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Activation theory suggests that intermediate rather than low or high levels of quantitative job demands benefit job performance and job satisfaction among managers. Using an equity theory framework, I hypothesize that perceptions of effort-reward fairness moderate these inverted U-shaped demand-response relationships. In support of this hypothesis, survey results demonstrate that managers who perceive effort-reward fairness perform better and feel more satisfied in response to intermediate levels of job demands than managers who perceive "underreward unfairness."
Onne Janssen (Mon,) studied this question.
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