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

Equity Theory - Essay ExampleEquity theory is useful to understand why people behave in a current 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 coitus 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 much 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 peoples motivational needs through better people connect and interp ersonal relationship. Other than actual motivational needs of every individual, managers can strive to lie with 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 agreement 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.