Which of the Following Observations Is True About the Equity

Multiple Choice

Which of the following observations is true about the equity theory?

A) It suggests that managers compare the performance of employees with their potential to improve.
B) It suggests that employees' performance should be evaluated based on their developmental needs.
C) It suggests that internal equity pay comparisons focus on what employees in other organizations are paid for doing the same general job.
D) It suggests that when a person's outcome-input ratio is greater than the comparison other's ratio,underreward inequity is perceived.
E) It suggests that people evaluate the fairness of their situations by comparing them with those of other people.