What role does Equity theory play in the new system?

What role does Equity theory play in the new system?

• Answer:

  Answer no 01 NON-FINANCIAL REWARD As in 1980, it was difficult for WAPDA to find qualified person, there were many reason of it at that time there was literacy was not that good, there were not as many as institutions of cultivating qualified person, so qualified people were at that so rare and expensive, they had their own demand it was not easy for WAPDA at that time to retain qualified person, however at that time WAPDA could offer some non-financial reward in order to motivate the employees and reinforce the employees performance. In my opinion WAPDA could offer these non-financial awards to retain and motivate qualified person. There are 7 non-financial rewards which even don’t cost a penny, motivating people with non-monetary reward in the workplace is the message every employee would like their boss to hear for true leadership and vision! 7 type of non- financial rewards. 1. Treat employees with respect. 2. Told them what they are doing is right. People are motivated when. 3. There is clear communication of goals 4. They feel that their ideas are listened to fairly. 5. The person closest to job should give as much independence to solve problems in their own way. Intelligent people are motivated by. 6. Learning new things. 7. Pride in feelings they are doing something bigger than them. Answer no 02 Role of Equity Theory: Equity theory plays very much important role in new system, as job are defined and managers now have more objective method to evaluate employees on the basis of their input which will be in converted in out put, superior and experience will be given much as compared to the junior and newer persons. Individual will consider that he is treated fairly if he perceives the ratio of his inputs to his outcomes to be equivalent to those around him. Thus, all else being equal, it would be acceptable for a more senior colleague to receive higher compensation, since the value of his experience (an input) is higher. The way people base their experience with satisfaction for their job is to make comparisons with themselves to the people they work with. If an employee notices that another person is getting more recognition and rewards for their contributions, even when both have done the same amount and quality of work, it would persuade the employee to be dissatisfied. This dissatisfaction would result in the employee feeling underappreciated and perhaps worthless. This is in direct contrast with the idea of equity theory, the idea is to have the rewards (outcomes) be directly related with the quality and quantity of the employees contributions (inputs). If both employees were perhaps rewarded the same, it would help the workforce realize that the organization is fair, observant, and appreciative. INPUT OUTPUT People put into job time, effort, ability loyalty, what people get from job Tolerance, flexibility, integrity, reliability, pay, bonus, perks, benefits, Commitment, heart and soul, personal security, recognition, interest, Sacrifice etc. Development, reputation, Praise, responsibility, Enjoyment etc. People become demotivated and reduce input, and/or seek change or improve whenever they feel their input is not being fairly rewarded by output, fairness is based upon perceived market norms.