Salac, Ramon Kristian A-112

According to Griffin (2016) in the 302 nd page of his book “Fundamentals of

Management”, equity theory argues that people have the intention to seek social equity
in the inducements they receive depending on their performance. It was also mentioned
that equity is the belief of an individual that he or she is treated fairly. Equity theory also
proposes that people tend to see their performance and inducements as ratios, which
then is compared to others. The comparison may then result to being equitably
rewarded, under-rewarded, or overrewarded.
A person who is overpaid experience inequity in a way that it may affect not only
his performance, but also the performance of his co-workers and their relationship with
him. Since equity theory suggest that individuals compare their rewards and
performance to see if the treatment they receive is fair or not. Among the many
possibilities that the overpaid person experiences inequity is the jealousy of his peers,
specially if they have the same input as he does yet they have lower rewards, this may
result to his co-workers treating him harshly, making him the topic of gossip in the
workplace, or even complaining to their boss that they also deserve a raise or he
deserves to have lower compensation. Another possibility is he might feel motivated
since he had a raise and improve his performance, or lose motivation since it feels too
easy for him to get the work done, resulting to stagnation or even detrimental
performance. Lastly, he could intentionally decrease his performance level, in order for
his compensation to be reduced, because he might feel that he doesn’t deserve it, or he
wants to avoid certain issues involving his peers in the workplace.
Equity theory also applies in the classroom setting, since inequity may also arise
among students and teachers. I have personally experienced inequity, where my
teachers in elementary had higher expectations out of me. This got me pressured, at
first, I was not sure if I would decline their offers for me to participate in various
competitions since I saw myself underqualified, and some of my classmates had the
same sentiments, they saw other individuals more qualified than I am. But I also
realized that those were opportunities for me to grow, so my solution to solve the
inequity I experienced was to do better and try my best to prove my abilities to my
teachers and classmates. By improving my input, the outputs I gained were outputs that
I really earned, which then made my ratio equitable.
Sources:
Griffin, R. (2016). Fundamentals of Management [Ebook] (8th ed., p. 302). Cengage
Learning. Retrieved 11 October 2020, from
https://www.statisticiansforhire.com/wp-content/uploads/2019/04/Fundamentals-
of-Management-8th-Edition-Ricky-Griffin-978- 1285849041.pdf?
fbclid=IwAR2vKwNqpGO_n0u5S5JUe8tf37kRpdst9gMRZv5ejb
SOk02gc_0mrJMewzA.