Equity Theory

The equity theory concerns an employees perception about how he is being treated. The equity theory of motivation is based on the fact that people in ein truthday lives seek impartiality in social exchanges. Seeking fairness also applies to body of litigate situations where employees expect a fair return to the their efforts. People very often calculate whether the rewards commensurate with their efforts by comparing themselves to their colleagues who work at the same level or are prudent for same kind of work. The equity theory measures equity by comparing the ratios of contributions and benefits within the relationship. Contributions or Inputs refer to hard work, readiness level, tolerance, enthusiasm etc. while benefits or outcomes refers to salary, perquisites or intangibles such as recognition etc. Two people at the same level need not receive relate benefits but the ratio should be similar. A soulfulness considers that he is treated fairly if he perceives the ratio of contributions to benefits (i.e. inputs to productions) is equivalent to others some him.

A sense of contradict inequity exists when another person receives greater outcomes for similar efforts. Employees become demotivated in relation to their business organisation and employer, if they feel their inputs are greater than their outputs. A high negative inequity can lead to dissatisfaction among employees and affect their job performance. On the other hand, a person experiences positive equity when his output to income ratio is greater than that of the relevant co-worker. Positive equity serves as a motivational factor and the person does not straits putting in more efforts. If you want to get a full essay, order it on our website: Ordercustompaper.com

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