Equity Theory Essay Example | Topics and Well Written Essays - 500 words

Equity Theory - Essay Example Equity theory is useful to understand why people behave in a certain manner that satisfy their desires and how they relate to these achievements. It is based on the simple belief that every employee in the organization wants to be treated fairly in relation to others. Here, the two aspects, i.e. ‘fairness’ and ‘relativity with others’ vary among individuals; these perceptions are greatly influenced by sociocultural aspects to a great extent. Many management researches have indicated that managing people in the contemporary global organizations that consist of employees from different sociocultural backgrounds has been a great challenge. Motivational needs vary in different cultures, which makes the managers’ job even more difficult to motivate their people according to what the employees perceive as a source of their motivation. In such situations, managers can improve their awareness of their people’s motivational needs through better people c onnect and interpersonal relationship. Other than actual motivational needs of every individual, managers can strive to know the extrinsic and intrinsic motivational factors of their people. In order to establish equity, organizations ensure goals and expectations are set, and reward schemes are made. All individuals will be rewarded in accordance with these policies and plans, which will cater to the extrinsic motivation. However, managers will have to make an effort to understand the intrinsic motivational factors for their people.