The paper 'Expectancy Theory of Motivation' is a great example of a Management Assignment. Equity theory explains the relational satisfaction perception of people regarding what is fair or unfair distribution of resources within the interpersonal relationships. According to the theory, the employees usually seek to maintain equity between their inputs and the outcome that they receive from the job (Huczynski & Buchanan, 2013). This is based on the belief that employees values fair treatment which leads to motivation. The inputs that the employees bring to the company must therefore be well compensated by the output that they receive from the company.
The inputs may include time, education, experience, effort, loyalty, hard work, personal sacrifice, skills, enthusiasm, tolerance and flexibility. The outcome may be negative or positive and they include job security, salary, employee benefit, expenses, recognition, praise, thanks, stimuli, sense of achievement and responsibility. The equity theory also indicates that the individuals maximize their outcomes (Wilson, 2013). The system of equity is usually influenced by the employees who try to encourage the other employees to behave in the same manner. Inequitable relationships usually result to distress among the employees.
This may also lead to the development of hunger and humiliation. The individuals who find themselves in an inequitable relationship usually attempt to eliminate the distress through the restoration of the equity. The rewards are also important in terms of motivating the employees according to the equity theory. The rewards form an important part of the output and it is awarded to the employees who provide the favorable input. The motivation of the employees is an important aspect of Diaco pharmaceuticals in Australia.
The company is recognized for its activities in terms of environmental protection as well as the high levels of motivation of the employees. The company provides daycare services as well as medical insurance for all the employees including the casuals. According to the equity theory, employee benefit is one of the important aspects of equity (Landis, et al, 2014). This is an indication that the outcome of the company is positive in terms of ensuring that the welfare of the employees is protected. The provision of daycare services is likely to motivate the employees as such services can be too costly for individual employees.
The proviso of medical insurance is also a motivational factor for the employees. This is considering that the employees are fully aware that they will receive healthcare services in case of any injuries or sickness. This is likely to motivate the employees to perform better and it is an indication of a good outcome on the part of the employees. In return for the outcome provided by the company, the employees are supposed to be hard-working and committed to their jobs.
According to the equity theory, hard work is considered as one of the main inputs that the participants contribute to a relationship (Wilson, 2013). Equity is therefore maintained in the company as the employees are hard-working and they are also provided with benefits that are for the purposes of motivating them. The CEO of the company usually encourages the employees to take a break at the beach when it is hot. However, the employees are required to be hardworking creative, and good at teamwork.
The input that is required of the employees is therefore equal to the output that is provided to them and it is an indication that there is a high level of equity within the organization. A sense of equity with the organization is responsible for the motivation of the employees (Greenberg & Cohen, 2014). Providing the employees a break to the beach during the hot days is an indication that the CEO is considerate of the welfare of the employees. However, the employees also have to show some levels of commitment through hard work in order to continue working for the company.
The employees whose input does not match the outcome of the company cannot retain their jobs for long. This is fair since the company expects a fair return for the outputs that it gives to the employees. According to the equity theory, groups will reward members who treat others equitably and punish those who do not (Kwon & Jang, 2012). This is the situation at the company as it punishes the employees who fail to provide favorable inputs in relation to the outcome.
Huczynski, A, & Buchanan, D, 2013, Organizational behavior, Pearson.
Wilson, F, M, 2013, Organizational behaviour and work: a critical introduction, Oxford University Press.
Landis, E, et al, 2014, A Synthesis of Leadership Theories and Styles, Journal of Management, 15(2), 97.
Greenberg, J, & Cohen, R, L, 2014, Equity and justice in social behavior, Academic press.
Kwon, S, & Jang, S, S, 2012, Effects of compensation for service recovery: From the equity theory perspective, International Journal of Hospitality Management, 31(4), 1235-1243.
Lunenburg, F, C, 2011, Expectancy theory of motivation: motivating by altering expectations, International Journal of management, business, and administration, 15(1), 1-6.
Liao, H, et al, 2011, Modeling motivations for blogging: An expectancy theory analysis, Social Behavior and Personality: an international journal, 39(2), 251-264.
Griffin, R, & Moorhead, G, 2011, Organizational behavior, Cengage Learning.