University Of Central Punjab

Punjab Group Of Colleges Kamoke

Organizational behavior

Presented By: Marvell League

K1F14MCOM0006 Umme RubabK1F14MCOM0016 Sana LiaqatK1F14MCOM0017 Noor-ul-AinK1F14MCOM0026 MahnoorK1F14MCOM0038 Zohaib Azam K1F14MCOM0039 Asad AdnanK1F14MCOM0042 Sidra Liaqat

Equity

Theor

yIntroduction Case study Analysis Conclusion

What is Equity Theory?

Employees compare their ratios of outcomes to inputs of relevant others.

Equal ratios

Fair situation

Unequal ratios

Unfair situation

Tension motivates peopleToActMore.

No tension

Tension

Cont.……

Over rewarded

state

Under rewarded

state

Guilty

Anger

Case StudyBusiness Case….. Jane a supervisor at Venture (local store).

6years at job,,, started as a cashier at age of 16. Jane moved from position to position. Begins working very hard, skipping breaks, and taking on more

responsibilities. She begins to notice her peers and managers sitting in the office a lot

and not completing their work. Overwhelmed and upset she is working so many hours and the others

are relaxing in the office. Jane is conflicted,, complained her supervisor.

Her coworkers’ failure to complete their tasks begins to interfere with her job.

Complaints from her subordinates. Jane Approaches HRM for solution. Each complains about Jane, saying she is just jealous. Colleagues verbally warned and told to complete their work in the

future. HRD tells Jane the issue has been solved. Jane notices the group completing more work. And is satisfied with how she handled the situation.

Cont.……

Case Study

Analysis Jane feels as if her input is greater than her peers, but their outcomes

are greater. (comparison other) Underpayment inequity. Underpayment inequity not reduced

drastic behavioral measures. Pay cuts results in

lowering quality of work, or wasting time.

Underpayment inequity.

Common

Cont.……

Overpaymentinequity.

Not Common

Practical Implementa

tionStudent

Teacher

Doctor

Lawyer

Govt.

servan

ts

Labor

unions

Conclusion

Jane was not satisfied till she solved the problem through Human Resource Department. It was state of unfairness for Jane which causes tension and underpayment inequity that leads her to solve the problem and create a fair situation for her.

Equity theory is most useful when considering social relationships in the workplace.

Inequity perceptions take place when the person's input/outcome ratio not matching their comparison other's ratio.

Equity theory concerns distributive justice.

Cont.……

Thank

you