Based on what he has learned about employee motivation from his Introduction to Business class, Kesse is a strong advocate of the equity theory of motivation. Which of the following is correct regarding equity theory? Managers can try to avoid problems arising from inequity by ensuring that rewards are distributed based on performance and that everyone clearly understands the basis for their own pay. It is least relevant to compensation as an outcome. The idea behind equity theory is that employees should be treated like family members. The idea behind equity theory is that employees dislike work and will function only in a highly controlled work environment