Karen graduated from college four years ago and has been working at Betaphy Inc. ever since. She has consistently received good performance evaluations for the quality of her work. She recently found out that her company hired a fresh college graduate with no experience at a salary higher than hers. Which of the following theories will Karen most likely use to evaluate this situation?

A) reinforcement

B) goal setting

C) equity

D) expectancy

E) operant conditioning

Equity

Explanation:

Equity theory focuses on determining if a situation is fair to both people who are part of the situation.

In an organization, it refers to the perception that employees have where they seek to maintain an equity between what they bring to a job and what they receive from it, against what they see other employees bring to the job and what they receive from it.

In this case, Karen has been working in the same organization for four years and consistently received good performance evaluations (this is what she brings to her job), however she just found out a fresh college graduate (therefore with less experience than hers) has been hired and she is being paid a higher salary than Karen's. (what she gets from the job)

Karen most likely will not see equity between what she has given to the job and what she receives (the amount of salary) against what the new employee gives to the job (less experience) and what she is receiving (a higher salary).

Since Karen will likely focus in the inequity of this situation, we can say that she will most likely use the theory of equity to evaluate this situation.