Equity Theory and Its Effect on Performance Outcome [ READ ]
Sultan Gashgari
This study examines the concept of equity theory, its intention, and core hypothesis. I will follow a line of investigation on equity theory in regard to its fundamental importance to organizations since it is assumed to be one of the essential and most graded significant motivators. Al-Zawahreh and Al-Madi observed that equity theory is gaining deserved popularity in the human resource departments as it ensures fair results for both the employer and the employee. The scholars also conduct a survey to determine why organization-based leaders and the human resource departments need to pay close attention to this theory. The research problem is establish the link between equity and performance. Bell observes that organizational equity theory is predicated on the assumption that an employee is perceived to be paid equally for work done when compared to those in similar categories, as well as treated equally in terms of other benefits”. In the same way, the model of equity is reckoned in relationship marketing as noted by Ashley, Noble, Donthu, and Lemon. Finally, according to Hofmans, perceptions of inequities lead to stress; the higher the feeling of inequity, the greater the level of stress is. Therefore, this study will grant human resource departments expansive indulgent on the value of equity in running the organization effectively. It is evident that equity is a major factor in performance, and thus, it should be prioritized.
Sultan Gashgari
This study examines the concept of equity theory, its intention, and core hypothesis. I will follow a line of investigation on equity theory in regard to its fundamental importance to organizations since it is assumed to be one of the essential and most graded significant motivators. Al-Zawahreh and Al-Madi observed that equity theory is gaining deserved popularity in the human resource departments as it ensures fair results for both the employer and the employee. The scholars also conduct a survey to determine why organization-based leaders and the human resource departments need to pay close attention to this theory. The research problem is establish the link between equity and performance. Bell observes that organizational equity theory is predicated on the assumption that an employee is perceived to be paid equally for work done when compared to those in similar categories, as well as treated equally in terms of other benefits”. In the same way, the model of equity is reckoned in relationship marketing as noted by Ashley, Noble, Donthu, and Lemon. Finally, according to Hofmans, perceptions of inequities lead to stress; the higher the feeling of inequity, the greater the level of stress is. Therefore, this study will grant human resource departments expansive indulgent on the value of equity in running the organization effectively. It is evident that equity is a major factor in performance, and thus, it should be prioritized.
