Briefly discuss the motivating value of pay equity for employees.
What will be an ideal response?
Simply defined, equity embraces the concept of fairness. Equity theory, also referred to as distributive fairness, is a motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve. A central point the theory makes is that individuals make comparisons with people both inside and outside their organization, and that these comparisons influence their motivation. In a work setting, individuals form a ratio of their inputs (abilities, skills, experiences) to their outputs (salary, benefits). They then compare the value of that ratio with the value of the input/output ratio for other individuals in a similar class of jobs either internal or external to the organization. If the value of their ratio equals the value of another's, they perceive the situation as equitable and no tension exists. However, if they perceive their input/output ratio as inequitable relative to others', this creates tension and motivates them to eliminate or reduce the inequity. The strength of their motivation is proportional to the magnitude of the perceived inequity. ?
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