IB Business Management Practice Exam 2025 – Complete Prep Guide

The theory that centers on individuals seeking to correct perceived inequities in their rewards is Adams' Equity Theory. This theory posits that people assess their job satisfaction and motivation in terms of the fairness of the rewards they receive compared to others. When individuals perceive that their outcomes (such as salary, recognition, and benefits) are not aligned with their inputs (like effort, experience, and skills) and compare these ratios with those of their peers, they may feel a sense of inequity. This feeling can lead to various actions to restore balance, such as altering their inputs, seeking changes in rewards, or even changing their comparison standards.

In contrast, Maslow's Hierarchy of Needs Theory focuses on the progression of human needs from basic physiological requirements to higher-level psychological needs, emphasizing that fulfillment of one level must occur before progressing to the next. Herzberg's Motivation-Hygiene Theory distinguishes between hygiene factors that can cause dissatisfaction and motivators that lead to satisfaction, rather than addressing perceptions of fairness directly. Pink's Drive Theory emphasizes intrinsic motivation driven by autonomy, mastery, and purpose, rather than equity in rewards. Thus, while all these theories contribute to understanding motivation, it is Adams' Equity Theory that specifically addresses the concept of perceived inequity in rewards