Organizational Theory and Behavior Final

In: Business and Management

Submitted By GMcDowellJr
Words 2076
Pages 9
FINAL EXAM
1 - Equity, like beauty, is in the eye of the beholder. What one person sees as fair and reasonable another interprets as injustice. Like beauty, injustice is something that can grow on a person. Right now it may not seem that its “not really about the money” but tomorrow things may appear quite a bit different.
Equity theory is based on cognitive dissonance theory (where two contradictory ideas are held simultaneously resulting in feelings of discomfort) developed by social psychologist Leon Festinge. When a person feels that they are being treated unfairly, when they perceive that their work is rewarded differently when compared with others, they experience a form of cognitive dissonance. The theory suggests that he/she will take corrective action in order to return to a state of balance. When the perceived inequity is negative (when a person is doing more work for less pay than peers for example) these actions, which can be either overt or subtle, will result in counter productive work behaviors. The corrective action may not be conscious but it will be there regardless. Even if a person enjoys his/her job, work behaviors will begin to shift. If the inequity is negative these changes will likely take the form of subtle actions - tardiness, less enthusiasm, slower work, etc. - which will tend to reduce the inequity by lowering the reward to work, or outcome to income, ratio. Over time, these behaviors can do far more harm to a company than might have resulted had the inequity been resolved earlier. Eventually the changes will likely become noticeable and the employee will either resign or be forced to leave.
Perhaps surprisingly, companies are often unaware of these inequities. Since the inequities are perceptual and unique to each person, as is the threshold at which the inequity is motivational, managers are left largely in the dark…...

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