page 28, Equity theory

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  • #136509

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    Saad ALAwami
    Participant

    What do you mean by this scented (For most employees, their motivation is influenced by relative rewards as much as by absolute
    rewards.)??

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  • #136521

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    Brian Hock
    HOCK international

    Saad,

    It means that people do not care about how much money they make, but rather how much they make compares to other people.

    For example, my salary may be $5,000 a month and I may be very happy about that and I am happy with my salary (that is my absolute salary). However, when I find out that someone else who I think is a worse employee than me makes $5,500, I become upset and demotivated. That is not because of the amount of my salary, but rather how my salary compares to others (that is the relative, compared to others, reward).

    Brian

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