Wednesday, April 20, 2022

Equity Theory

  




 Assignment 06 -Equity Theory

Equity theory was introduced by Porter and Lawler. This theory is based on the employee beliefs about their work in relation to the number of inputs they invest in order to obtain the expected outcomes (Lunenburg & Ornstein, 2008).

According to the study conducted by Hofmans (2012), the employee inputs are the total effort they extend to execute organizational work. As per the author, educational background, experience related to the job, trainings received are the inputs of employees.

The outcomes are the returns employees receive after they put their total effort. These are the set of rewards they receive for executing the work, such as, salaries or wages, promotions, job security, better working conditions, status etc. s (De Gieter et al.  2012).

Employees then try to assess the ratio between inputs and outcomes. Every employee expects this ratio to be equal as they expect employment fairness. When if the ratio becomes equal, it indicates that there is a fair and equitable exchange between themselves and the employer. In other words, they receive equal returns for their effort. When if the ratio is not equal, this leads to a situation where employees become demotivated (De Gieter et al.  2012).

According to the study conducted by Lunenburg and Ornstein (2008), employees act differently during an inequity. Inequity might be positive or negative. When there is a negative inequity where outcomes are less (less rewards) compared to the efforts employee put forward, then employees become demotivated. They contribute less time and effort, become lethargic and ultimately become less productive. Such employees have a higher tendency to leave the organization or get absent. If the inequity is positive, where outcomes are greater (more rewards) compared to the efforts employee put forward, then employee become motivated. They even tend to work additional hours without pay.

Therefore, this theory helps employers to discover remedies to eliminate inequities in the organizations and help maintain a balance between the work done and the rewards given to employees.

As per the below video constructed by Dr. Ben Baran, it explains how equity theory works on employees in organization. Also, through the example, Dr. Ben explains the consequences of having an inequity in a workplace.  He has taken two employees (Jane and Bob) who engage in the same job in the same department. Both these workers are paying similar level of effort, they are in similar nature of ambience and have same inputs towards their jobs.

https://www.youtube.com/watch?v=2p_4C0Mzne4



Employee Jane is facing an inequity compared to Bob. What can she do to reduce the tension and store equity in her mind is discussed in this video by Dr. Ben Baran. Jane notices that Bob receives more outcomes for the inputs he poses, than what she receives. To restore balance, Jane has to alter her outcomes simply by either demanding more pay, steal, or decrease her inputs. Decreasing inputs can be done in various ways such as decreasing the efforts, reduce the quality of work, arrive late to work, attack the opponents’ inputs or in other words sabotage the opponent, point out the extra payments received by the opponent to others. In the long term, a major conflict arises between parties and it will further make Jane more desperate and reduce performance.

References

De Gieter, S., De Cooman, R., Hofmans, J., Pepermans, R. &Jegers, M. (2012). Pay level satisfaction and psychological reward satisfaction as mediators of the organizational justice turnover intention relationship. International Studies of Management &Organization, 42:50-67.

Hofmans, J. (2012). Individual differences in equity models. Psicológica, 33, 473-482.

Lunenburg, F.C. & Ornstein, A.C. (2008). Education administration: Concepts and practices (5th Ed.). Wadsworth: Cengage Learning.

https://www.youtube.com/watch?v=2p_4C0Mzne4

2 comments:

  1. The Equity Theory of Motivation deals with the way people compare the value of themselves to others in similar work situations based on their inputs and outputs. Inputs are what you bring to the situation, like your skills, time and education (Indika S, 2019).

    ReplyDelete
  2. Some are motivated by the challenge they face in carrying out their job, some are motivated by the level of fame they earn, others and majority of people are motivated by the money they earn. People will work better when they are motivated enough with the pay scale, the incentives and the wages they are offered in return of a job well done (Robbins 2012)

    ReplyDelete

Importance of Motivation

      Assignment 08 - Importance of Motivation According to the authors Ankur et al. (2019), the importance of employee motivation has bee...