Answer to Question 1
B. mediator
Answer to Question 2
Answer: Equity theory states that people are strongly motivated to maintain a balance between what they perceive as their inputs or contributions and their rewards. If a person perceives an inequity, a tension or drive will develop in the person's mind and the person will be motivated to reduce or eliminate the tension and perceived inequity. The four forms are external, internal, individual, and procedural. External equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies. Internal equity refers to how fair the job's pay rate is when compared to other jobs within the same company. Individual equity refers to the fairness of an individual's pay as compared with what his or her co-workers are earning for the same or very similar jobs within the company, based on each individual's performance. Procedural equity refers to the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay.
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