According to equity theory in psychology, the basic principle is that employees try to:

• A. maximize their own rewards regardless of others' outcomes
• B. focus solely on increasing their own inputs
• C. avoid all forms of competition in the workplace
• D. maintain fairness by comparing their input-output ratios to those of others

Answer: (D)

Verified step by step guidance

1. Understand the core concept of equity theory, which is a motivation theory in psychology focusing on fairness in social exchanges, particularly in the workplace.
2. Recognize that equity theory suggests employees evaluate fairness by comparing their own input-output ratio (what they put in versus what they get out) to the input-output ratios of others.
3. Identify that 'inputs' refer to what an employee contributes (e.g., effort, skills, time), and 'outputs' refer to what they receive (e.g., salary, recognition, benefits).
4. Analyze the options given and see which aligns with the principle of maintaining fairness through comparison of ratios rather than focusing solely on maximizing rewards or avoiding competition.
5. Conclude that the correct understanding is that employees strive to maintain fairness by comparing their input-output ratios to those of others, which is the essence of equity theory.