Business Degree Certification Practice Test

What is a main drawback of equity theory?

1. It tends not to focus on long-term incentives

2. Managers find it hard to apply in real-world scenarios

3. Motivation based on perceptions of fairness can be inaccurate

4. It emphasizes job nature over worker motivations

The correct answer is: Motivation based on perceptions of fairness can be inaccurate

The main drawback of equity theory revolves around the idea that motivation is heavily influenced by perceptions of fairness. This means that individuals assess their input-output ratio—what they contribute to their work compared to what they receive in return—and compare it to others in similar situations. When these perceptions are inaccurate, it can lead to demotivation and dissatisfaction. For instance, if an employee believes they are contributing more than a peer while receiving less in terms of rewards or recognition, they may feel unfairly treated. This misperception can result in a decline in productivity and motivation, creating an environment where employees focus on perceived injustices rather than actual performance. Thus, neither actual inputs and outcomes nor the fairness of comparisons can guarantee motivated behavior, especially when individual perceptions do not align with reality. This aspect highlights that motivation derived from perceived fairness may not always reflect the actual circumstances, leading to misguided feelings about equity and fairness that can disrupt workplace dynamics and performance.