According to John Stacy Adams, who propounded the eEquity theory, the Equity theorys model focuses on an individual’s perception of how fairly he/ she is treated in comparison to others (Book). The theory is based on the belief that people are motivated to maintain a fair equitable relationship between themselves and others (Book). We perceive fairness if we believe that the input- to -outcome ratio we are bringing to the situation is similar to the input -to- outcome ratio of a referent (paper). Perceptions of inequality creates tension within us and drives us to actions that will reduce perceived inequality. (Paper)
In my current workplace, the earnings of employees are not shared. We have always been told to keep our salary confidential, but there was aone time, when one employee disclosed his salary to his co-worker/friend. As it turned out, he was receiving more pay than the co-worker who was doing the same job in addition to other duties. When this happened, he was no longer motivated as before, and as pointed to by Stacy Adams, the employee who was not receiving the same or more pay than the co-worker, decreased his input to what he felt it was an equitable level. On the other hand, the other co-worker who was receiving more pay, tooke on more responsibilities. In the end, the one who was underpaid demanded a salary raise from management, which was denied, and he ended up quitting the job.
b. If no, how can equity theory be applied in a workplace environment in which pay data is not shared between employees?
As pointed to by Professor Safayeni in Lecture 5, with equity theory, employees seek for balance for their effort vs. the payback they get. From this theory, in a workplace environment, equity is in the eye of the employee. (Paper).
From my personal experiences at my current workplace, there’s a perception of inequity in pay among my co-workers. (which wWe do n’ot know, pay differences nor whether it is true or not because this information is not shared). This has created tension within some hardworking employees and has led them to actions to reduce the perceived inequality. (pPaper). As a result of this, mostany of my co-workers are not motivated and there have been times, where I have witnessed employees who used to be very hardworking in my organization, that as a result of perceived inequality of pay, watching tvTV shows on their computers at work.