EquityTheory

EquityTheory&OrganizationalJusticeTheroleequityplaysinmotivation•Employeesperceivewhattheygetfromajobsituationinrelationshiptowhattheyputinto,andthencomparetheiroutcome-inputratiowiththatofrelevantothers.InputsOutputsInequityduetobeingunderrewardedEquityInequityduetobeingoverrewarded*Whererepresentstheemployee;andrepresentsrelevantothers;O=outcomes;andI=inputs.RatioComparisons*PerceptionEquityTheoryEquitytension•UnderrewardedAnger•OverrewardedGuilt•Negativestateoftensionprovidesthemotivationtodosomethingtocorrectit.ReferentcomparisonsThereferentthatanemployeeselectsaddstothecomplexityofequitytheory.Therearefourreferentcomparisonsthatanemployeecanuse:Referentcomparisons1.Self-inside.Anemployee'sexperiencesinadifferentpositioninsidetheemployee'scurrentorganization.2.Self-outside.Anemployee'sexperiencesinasituationorpositionoutsidetheemployee'scurrentorganization.3.Other-inside.Anotherindividualorgroupofindividualsinsidetheemployee'sorganization.4.Other-outside.Anotherindividualorgroupofindividualsoutsidetheemployee'sorganization4moderatingvariables•Whichreferentanemployeechoosewillbeinfluencedbytheinformationtheemployeeholdsaboutreferentsaswellasbytheattractivenessofthereferent.•Gender,lengthoftenure,levelintheorganization,amountofeducationorprofessionalism.Employeeswhoperceiveinequitywillmakeoneofsixchoices:•1.Changetheirinputs.•2.Changetheiroutcomes.•3.Distortperceptionsofself.•4.Distortperceptionsofothers.•5.Chooseadifferentreferent.•6.Leavethefield.ModelofOrganizationalJusticeDistributiveJusticeDefinition:perceivedfairnessofoutcome.Example:IgotthepayraiseIdeserved.ProceduralJusticeDefinition:perceivedfairnessofprocessusedtodetermineoutcomeExample:IhadinputintotheprocessusedtogiveraisesandwasgivenagoodexplanationofwhyIreceivedtheraiseIdidInteractionalJusticeDefinition:perceiveddegreetowhichoneistreatedwithdignityandrespect.Example:whentellingmeaboutmyraise,mysupervisorwasveryniceandcomplimentary.OrganizationalJusticeDefinition:overallperceptionofwhatisfairintheworkplaceExample:Ithinkthisisafairplacetowork.ExpendedmeaningofequityProceduralJustice•How?•theperceivedfairnessoftheprocessusedtodeterminethedistributionofrewards.•Twokeyelements:processcontrolandexplanations.•Managers:consistent,unbiased,makedecisionsbasedonaccurateinformation,opentoappeals.•Distributivejusticeismoststronglyrelatedtoorganizationalcommitmentandsatisfactionwithoutcomessuchaspay.•Proceduraljusticerelatesmoststronglytojobsatisfaction,employeetrust,withdrawalfromtheorganization,jobperformance,andcitizenshipbehaviors.First,realizeemployees’sensitivenesstounfairness,openlyshareinformationandfollowconsistentandunbiasedprocedures.Second,focusonsourceoftheproblems.Managers