Western Governors University (WGU) BUS2301 C483 Principles of Management Practice Exam

The concept of equity in management and organizational behavior refers to the perception of fairness in input-output ratios among individuals. When individuals reassess their inputs, such as effort, skill, and time, against their outcomes, like rewards, recognition, and compensation, they may identify discrepancies that lead to feelings of inequity. By making behavioral or perceptual changes, individuals can restore a sense of equity, either by adjusting their inputs, seeking appropriate outcomes, or changing their perceptions of the situation.

In this context, when a person perceives an imbalance—where they feel over- or under-rewarded compared to others—they may engage in actions or cognitive adjustments to restore equity. This can involve re-evaluating their contributions, increasing their efforts, or even seeking different outcomes to match what they observe in their peers. Therefore, the ability to restore equity through behavioral or perceptual changes is central to the way individuals navigate their relationships and experiences in a workplace setting.