The Utility of Equity Theory-Free-Samples-Myassignmenthelp.com

Question: Jane and Connie are neighbours who both work as purchasing managers in different companies in the petrochemical industry. During one neighbourly discussion, Jane learned that Connie's salary was nearly 15 per cent higher than hers even though their job duties were similar. Other than this difference, both received similar benefits and seemed to enjoy their jobs and colleagues. Jane was upset about Connie's higher salary, although she did her best to hide her emotions from Connie. After all, it wasn't Connie's fault that they received different salary levels. Jane was frustrated not only because Connie received a significantly higher salary, but also because she was certain that she worked longer hours and was more productive than Connie. According to equity theory research, what will Jane probably do to reduce her upset feelings? Answer: Equity theory is focuses on the fact that the persons are motivated by the concept of equality and in case they discover certain inequities in either the input or the yield ratios of themselves and their referent groups they are bound to adjust their input, to reach the professed amount of equity. The higher an individuals conecption of equity, the more motivated an individual will be. It is natural for a person to be de-motivated in case he or she finds that there is an existent unfair environment (Al-Zawahreh Al-Madi, 2012). The most common situations or scenarios where the equity theory approach is found is when employees compare the payments which they receive from their offices and what their friends receive from theirs. In case there are disparities in the salaries in the same post in different companies, there is bound to be a de-motivated feeling. In these situations the people compare their own effort-to-compensation ratio and lose their motivation in the procedure (Al-Zawahreh Al-Madi, 2012). In the given case study, which tells the story of two neighbours, Connie and Jane, despite working as professionals in the same genre, they received salaries which were quite different. Connie received 15% higher salary in comparison to Jane. Connie was frustrated and felt bad that despite being a much more efficient employee her salary was considerably less. It is desirable for employees to report the instances of favouritism and disparities in the compensation to their managers to avoid such problems from the start (Kwon Jang, 2012). References: Al-Zawahreh, A., Al-Madi, F. (2012). The utility of equity theory in enhancing organizational effectiveness.European journal of economics, finance and administrative sciences,46, 158-170. Kwon, S., Jang, S. S. (2012). Effects of compensation for service recovery: From the equity theory perspective.International Journal of Hospitality Management,31(4), 1235-1243.