Fairness and Equity With Employees

Fairnessand Equity With Employees

Fairnessand Equity With Employees

Themarket rate is a term that refers to the amount of return aninstitution is obliged to make available to allow it efficientlycontest alongside other organizations in appealing and retainingcompetent workforces. Remuneration rates vary among institutions andamongst workforces within the same institution. It is important thatevery organization to first ascertain those institutions with whichit competes within the employment and retaining of competentworkforce and edge out market contrasts to those pertinent employers. These organizations, therefore, have to conduct remuneration surveysso as to establish the salary rates paid by the relevantinstitutions. The organizations, then have to use this information toinstitute wage rates that allow the organization to competeefficiently in attracting competent employees (Chapman,2011).&nbspHowever,for this small state university there is no reason for applying themarket rate to their employees. The school is small and to attractmany people it has to provide proper incentives the university alsohas a way of evaluating their employees and so they should be paidaccording to the work done and not a market rate fee.

Thereare situations where market rate cannot be applied since everyindividual would like to be paid based on their input. This is wherea simple yet reasonable theory of motivation in the workplace wasdeveloped by Adams. According to this theory, an employee can onlyput in the effort that is relative to what they expect to achieve asa reward. It goes to the bottom of a simple formula of inputs isequal to the output (White, 2014). This is why the managementdepartment in a small university gets evaluated to assess theirperformance. Employees expect to be rewarded like anyone else in theorganization. The Rewards can be job security, financial compensationand praise and recognition. The moment the balance is arrived atbetween the inputs and outputs it is then assumed that employeesbecome satisfied and in a position to work to achieve highproductivity.

Accordingto people, fairness is something that should be paramount amongemployers. However, when it comes to balancing, most employees tendto rely on a lot on perception this is what do they see as equal andfair. Higher levels of motivation are expected in the situationswhere reward is equitable to the effort exerted. This equity theorysuggests that employees anticipate to be sufficiently rewarded fortheir determinations. Employees expect to be paid in the same mannerthat other employees have been whereby if a reward has been offeredto one employee for the work done same reward should be awarded toany other employee who has also performed to that level. Insituations where there is no equality in rewards, this might leadlevels that are lower to job contentment, behavior that is deviant tothe workplace and low morale among employees. It might cause problemsin performance, which might destructively impact the wholeorganization.

Comprehendingequity theory, and particularly its fundamental comparativecharacteristic assists policy makers and managers to understandseveral aspects. For instance, refining one individual`s terms andconditions is aimed at resolving the person`s wellbeing, however, ifthe adjustment is seen by other employees to trouble their positionthen this solution can actually generate pain. The theory remindspeople value the way they are treated in the surrounding environmentand not the way they are isolated.


Chapman,G. D., &amp White, P. E. (2011).&nbspThe5 Languages of Appreciation in the Workplace: EmpoweringOrganizations by Encouraging People.Moody Publishers.

White,P. (2014). Improving staff morale through authenticappreciation.Developmentand Learning in Organizations: An International Journal,&nbsp28(5),17-20.