Derek Lee Johnson

Career management

Research Paper: Equity Theory

Equity is defined as the quality of being fair or impartial, fairness: impartiality.  The antonyms: bias, discrimination, inequity, injustice, partiality, partisanship, prejudice, unfairness, unreasonableness: injustice. (Dictionary). In this paper I will discuss in detail how equity and equity theory in the context of work motivation operates.

The definition for equity implies fairness and impartiality. Inequity or bias describes the exact opposite. Organizations impose discriminatory practices on employees in a wide variety of ways. Whether implicitly or explicitly research and historical data confirms this notion.

Access discrimination prevents certain groups from possibly being hired or even promoted. Treatment discrimination denies certain groups and individual the ability for upward mobility or entry into organizations. The harsh reality is that minorities face hourly, daily, and year after year work place discrimination. Covert exclusion masked by a plethora of mechanism.

Stereotyping is one element underlining organizational inequities. Systemic racism is the root lingering beneath the surface of this reality. According to Greenhaus, “Negative stereotyping can produce biased assessment of members of targeted groups and can play a role in decisions regarding promotion, salary increase, and job assignments.” (Greenhaus). Unfortunately, the level at which stereotypes reside in the human psyche has inconsequential relevance to the victims of this social program. “Cultural similarity produces feelings of psychological closeness between people in a relationship, whereas dissimilarity in cultural background and experience may produce a feeling of psychological distance.” (Greenhaus).

This cognitive revelation fails to invigorate the diminished opportunities of equally capable and competent minority employees. “Psychological distance and even fear because of the belief that people who are different from us are more difficult to understand and therefore more difficult to predict.” (Greenhaus).

It is important to note how psychological distance can easily translate into self- fulfilling prophecy. This lack of understanding gives birth to misinterpretation of a person’s reaction to bias.

“Equity theory is based in the idea that individuals are motivated by fairness, and if they identify inequities in the input or output ratios of themselves and their referent group, they will seek to adjust their input to reach their perceived equity.” (Study).

Equity theory is manifested via comparison ratios, with salary being the most used comparison. Those compared to are referred to as referent groups in which there are four groups: “Self-inside; your own experience within your current organization. Self-outside; your own experience within another organization. Other-inside; other people within your current organization. Others-outside; other people outside your current organization.” (Study).

Fairness acts as a modifying condition as does the lack of fairness initiate a sense of inequity. Input and output are important terms used in equity theory that should be understood. “Typically inputs include time, effort, loyalty, hard work, commitment, ability, adaptability, flexibility, tolerance, determination, enthusiasm, personal sacrifice, trust in superiors, support from co-workers and colleagues.” (Your).

These are attributes that a person may display and create a portrait of positivity. “Outputs in equity theory are defined as the positive and negative consequences that an individual perceives a participate has incurred as a consequence of his/her relationship with another. Outputs are job security, esteem, salary, employee benefits, expenses, recognition, reputation, responsibility, sense of achievement, praise…” (Your).

Payment is the principle equity discrepancy. Economic dissatisfaction propelled by perceived bias in pay distribution is very common.

 Equity theory refers to referents as those who are being compared too. Demographically the wealth and power distribution makes the referent group most often white males.

It would be fair to surmise that African-American have disproportionately experienced more equity bias in the workplace than white males or white females. In African –American communities we understand this as being institutional/systemic racism, albeit normalcy in American society.

Equity theory in the context of work motivation contends that perception is the linchpin that activates a comparison with referents. However, long before entering the work place minorities specifically Black people have experienced generational discrimination in institution and organizations in America.

Organizations of employment use direct discrimination and indirect discrimination. Direct discrimination can be simply treating certain people less favorably. Indirect discrimination can simply be developing policies that places a certain group at a disadvantage.

“In common day-to-day interaction, being treated unfairly because of ones’ personal characteristics produces wide-ranging deleterious impact on mental and physical health such as anxiety, psychological distress, various cardiovascular effects, poor self-reported health status, and low birth weight in infants of mothers experiencing discrimination.” (Hammond).

This research points to a segment of our society who experience discrimination/inequities literally every day in and outside of the work environment.

 “Discrimination is a complex phenomenon with adverse consequences at personal and organizational levels. Past studies have demonstrated that workers who are victims of discrimination might show less job satisfaction, less organizational commitment and worse levels of health and productivity.” (Di Marco).

In conclusion, equity theory in the context of work motivation appears to concentrates on the responsive aspect of perceived equity (in the work place) and implies that the outcome will determine motivational factors. An alternative view is that experiencing inequities (outside and in the work place) from childhood to adulthood might influence certain individuals work motivation.

References

1.      www.dictionary.com

2.      Di Marco, D. Cabrera,RL. Arenas, A. Giorgi, G. Arcanegeli, G. and Mucci, M.  Approaching the Discriminating Work Environment as Stressor: The Protective Role of Job Satisfaction. Published online (2016).

3.      Greenhaus, J.H., Callanan, G.A. & Godshalk, V.M. 2010. Career Management 4^th Edition, Thousand Oaks CA: Sage Publications.

4.      Study.com>academy>lesson>equity, Equity Theory of Motivation in Management Definition & Examples.

5.      www.yourcoach.be/en/employee-motivation-theories/stacey-adams-equity.

6.      Hammond, W.P., Gillen, G., & Yen, I.H. Workplace Discrimination and Depressive Symptoms: A Study of Multi-Ethnic Employees (2010).