How can equity theory explain the motivation of employees working at Diaco? IntroductionThe equity theory of motivation was developed by John Adams in 1963. This theory extends beyond focusing on the self, that is the employee as a person, to focusing the other persons in the organization such as fellow colleagues and friends within or even outside the organization but who may be involved in similar work. This creates a comparative effect for the employee, thus incorporating the aspect of equity as employees begin to focus on what is fair and what may be unfair in the course of their work and aspects related to work such as pay and remuneration.
The underlying aspects about the equity theory is that when people are, and feel that they are fairly treated, they get easily motivated to work better and even harder. When they feel or are treated unfairly, on the other hand, they get de-motivated and their productivity depreciates accordingly (Messick & . Cook 189). The way that people measure the sense of fairness in an organization, therefore, is what constitutes the equity theory. Equity Theory and DiacoDiaco seems to be performing excellently in applying the equity theory in, managing its employees.
The company ensures that all employees are treated fairly and equally amongst them, and that none of them benefits unfairly at the advantages of others, thus explaining the high rate of motivation among the employees in the company. First, the company pays medical insurance cover for all its employees, including those engaged on casual basis. This also includes day care services. This is a great step for the company in increasing the amount of motivation among its employees, making all employees feel equally important and useful to the company.
Extending day care services to all employees will make those with children work with the same zeal as those without children, as they do not have to waste time sneaking to check on their children at home during lunch breaks or arriving to work late. Besides, they do not spend their mental energy worrying on the safety of their children, because they can easily check on them while at work. According all employees medical insurance cover means that the company values all its employees, including those on casual basis just as importantly as the rest.
This will make the employees on casual get motivated to work just as hard as those on contracts or permanent basis, because the company views and appreciates them all equally. The company makes the same expectation for all employees equally, just the same way it accords them leisure and recreation equally. While it allows all employees to take some time at the beach, it expects them to work equally hard and deliver for the company.
Those who do not achieve this for the company fall out with management. This makes employees feel equal with one another, irrespective of the departments they work in and their level of employment. This acts as a motivation, where they know that they have equal chances of keeping or losing their jobs, all based on merit. Employees will, therefore, be motivated to work hard knowing that this is the only way they can keep or lose their jobs and not on favoritism or any criteria (Carrell & Dittrich 205).