4. A tenured employee becomes dissatisfied upon learning that a new hire in a similar role has a higher salary. Which motivation theory applies to the employee's dissatisfaction?
Answer: B
Equity theory applies to the employee's dissatisfaction.
The employee's dissatisfaction arises from a perceived inequity regarding their salary compared to a new hire in a similar role. This situation is best explained by equity theory, which posits that individuals assess their satisfaction by comparing their input-output ratio to that of others.
A) Expectancy
Expectancy theory focuses on the belief that effort leads to performance and that performance will lead to desired outcomes. It does not address the comparison of rewards between individuals, making it irrelevant to the dissatisfaction stemming from salary differences.
B) Equity
Equity theory directly addresses the fairness of outcomes in comparison to others. In this case, the tenured employee feels a sense of inequity when they discover that a new hire earns more despite having similar roles, leading to their dissatisfaction. This theory emphasizes how perceived inequalities can impact motivation and job satisfaction.
C) Agency
Agency theory deals with the relationship between principals and agents, particularly regarding incentives and outcomes. While it involves issues of motivation, it does not specifically address the perceived fairness or equity between employees' salaries, making it inapplicable to this scenario.
D) Reinforcement
Reinforcement theory is centered on the idea that behavior is motivated by the consequences that follow it, such as rewards or punishments. This theory does not encompass the comparative aspect of employee satisfaction and salary disparities, rendering it unsuitable in this context.
Conclusion
Equity theory is the most appropriate explanation for the tenured employee's dissatisfaction because it specifically addresses feelings of fairness and comparison between individuals in similar circumstances. The other options fail to account for the crucial element of perceived inequity, which is central to the employee's concern regarding differing salaries.