Strengths and Weaknesses of Equity

Theory
Equity Theory is a good resource for
organizations to consider when it comes to
understanding social comparison amongst
employees. However, as with any theory, there
are strengths and weaknesses in terms of both
practice and research. Thus, in order to
understand the use and applicableness of the
Equity Theory as an explanation and/or as a
motivator in the workplace it is vital that these
strengths and weaknesses be reviewed and
evaluated.    
Strengths
The following factors add to the strength and
validity of Equity Theory.
 
Researc Efficiency, For example: 
h effectiveness 1. 1967- Effects of
, and Inequity Produced
applicablenes by Underpayment
 s of theory on Work Output,
components Work Quality, and
supported by Attitudes Towards
several the Work, by
research Lawler & O'Gara
studies over
2. 1993- A Test of
the years
Refinement of the
Equity Sensitivity
Construct 
3. 2006- Equity
Theory Effects on
Worker Motivation
and Speed on the
Assembly Line 
4. The effects of
underpayment
inequity in
organizations are
strongly supported
(Pinder, 2008)
Theory Accurately For example: As in
predicts underpayment
behavior conditions, which
 is observed and
proven through the
research of the
Greenburg Studies
in 1990
Theory Makes For
practical example: Reasonab
sense le to assume that
most people do
compare "their
inputs and
outcomes relative
to others"
(Redmond, 2009)
Theory Ability to fit Stetcher and Rosse
with other (2007) state that
theories "based on the
(particularly assumption that
the people are capable
expectancy of calculating costs
theory) and benefits in
choosing among
alternative courses
of action" (p. 778).
 For example,
employees can use
the equity theory to
determine if
inequity has
occurred, and if so,
they can use the
expectancy theory
to act upon the
inequity.
 
Weaknesses
The following factors illustrate some of the
problems with Equity Theory.
 
Theory Lacks detail For
into certain example: Offers a
factors variety of
strategies for
restoring equity
but does not
predict in detail
which option an
 individual will
select (Redmond,
2009)
Researc Mixed For
h empirical example: Research
support on overpayment
inequity reveals
little effect of it in
organizations
(Redmond, 2009)
Researc Limitations For
h example: Because
many studies were
short-term there is
no knowledge of
long-term
reactions to
inequity
(Redmond, 2009)
Theory Little For
practical example: Various
value, thus factors, which are
better as an not under
 explanation administrations,
after the fact managers, and/or
than as a organizations
predictor of control can lead to
behavior inequity
(Redmond, (Redmond, 2009)
2009)
Theory Perception For
errors example: Human
perception can be
flawed, thus
exposing any
conceived
perception of
outcomes and
inputs to error as
well
Theory The original For
equity example: Research
theory, as conducted on the
posed by equity theory as it
Adam's, pertains to the
lacks Eastern cultures
scientific found that
 consideration equality, rather
or than equity, was
explanation preferred (Leung
for different and Bond, 1982,
values or 1984; Leung and
lack thereof Park, 1986;
of equity Mahler,
itself within Greenberg, and
cultures Hayashi, 1981, as
cited in Fadil et al,
2005)
 
As illustrated above, the Equity Theory
possesses both strengths and weakness, the
examination of which is necessary for the
correct use of the theory’s application in the
workplace. Equity Theory, with its strong
empirical support, can be used in the
workplace as a vital tool in reviewing
motivation and understanding employee
behaviors. Furthermore, the weaknesses of the
theory shed crucial light upon what it is that
needs further research and examination, thus
providing us with the knowledge of the
information we ought to seek in order to
further understand the structure of workplace
motivation.