Answer to Question #271407 in Management for mahee

Question

Kamal and Nimal are two executive level employees in a telecommunication organization. Both of them hold academic degrees and have same years of working experiences. Further, two of them are very committed employees and working hard in achieving organizational goals. However, suddenly Kamal got to know that Nimal is being paid more than him even though they have same qualifications and workload. After this, Kamal was unhappy about their organization. Discuss the applicability of Equity Theory in above scenario.

Answer 1

For corporate executives, equity theory has various repercussions: Individuals calculate the sum of their inputs and outputs. This implies that a professional mother may be willing to embrace lesser pay for more convenient operating hours. Inputs and results are assigned distinct worth by distinct personnel. Workplace psychologists have commonly used equity theory to analyze the link between a worker's incentive and their sense of fair or unequal behavior in the workplace.

The essential dyadic connection in a commercial situation is that among both staff and employers. Equity theory posits that workers aim to preserve an equal ratio between the resources they contribute to the partnership and the outputs they get, just like they do in marriage and various consensual dyadic interactions.