The core of the Equity Theory is the principle of balance or equity among people of the same level.
Assumptions of the Equity Theory
* The theory demonstrates that the individuals are concerned both with their own rewards and also with what others get in their comparison.
* People expect a fair and equitable return for their contribution to their jobs.
* People decide what their equitable return should be after comparing their inputs and outcomes with those of their colleagues.
* People who perceive themselves as being in an inequitable scenario will attempt to reduce the inequity either by distorting inputs and/or outcomes psychologically, by directly altering inputs and/or outputs, or by quitting the organization.
Prediction of Equity Theory:
Upon receiving a reward, equity theory would predict that an individual’s feeling will be based on whether or not she/he perceives it as fair or equitable. That feeling of equity or inequity results from the comparison with others of the same level. This comparison is based on the idea of proportionality of the contributions.
Motivational impact of reward
At the same level, if the reward of an individual is equal to others’ rewards, then there is equity, and thus she/he will be motivated. Conversely, if the reward of an individual is unequal to others’ rewards, then there is inequity and thus she/he will not be motivated.
Equity Theory applied to forgotten group member’s case
At the cafeteria incident, Mike walked away because he felt that he was not treated equally as others team’s members. Christine could have talked with him individually and explained to him that she perceives that he does not feel welcome and has been avoiding team meetings. She could address the how important it is to attend the team meetings, explain to him the aspects and the fact that team needs him as he has so much that could contribute and add value to the team. She could also indicate that the team's...