Which of the following theories of motivation looks at how people compare their efforts with their rewards?

The theory of motivation that examines how individuals assess their efforts in relation to the rewards they receive is known as Equity Theory. This theory focuses on the concept of fairness and balance in motivational contexts, suggesting that people are motivated by their perception of equity in the workplace.

According to Equity Theory, individuals compare their input (e.g., effort, time, skills) with their outcomes (e.g., salary, benefits, recognition) and then compare this ratio to others. If they perceive an inequity—either feeling under-rewarded compared to others or over-rewarded—they may experience a sense of dissatisfaction leading to demotivation or changes in their behavior to rectify the perceived imbalance.

This theory emphasizes the importance of social comparisons in the workplace, which can impact employee morale and productivity. For organizations, understanding Equity Theory is crucial for developing fair compensation structures and recognition programs that motivate employees effectively.

Contextually, while Intrinsic Motivation pertains to internal drives, such as personal growth and satisfaction, and Extrinsic Motivation refers to external rewards like pay or promotions, they do not specifically address the comparative analysis of effort and rewards. Systems theory, on the other hand, evaluates organizations as complex systems rather than focusing on individual motivations. Therefore, Equity Theory is the most fitting