Motivation: Analyze a Workplace Situation or Experience Using Equity Theory
Topic for the paper:Motivation: Analyze a workplace situation or experience using equity theory
Equity theory is a theory that attempts to explain relational satisfaction in terms of perceptions of fair/unfair distributions of resources with interpersonal relationships. The equation normally used to illustrate the equity theory is:Individual’s outcomes relational partners outcomes—————————– = —————————————–Individual’s own inputs relational partners inputs
Equity theory in business, introduces the concept of social comparison, whereby employees evaluate their own input/output ratios based on their comparison with the input/outcome ratios of other employees. Inputs include the employees time, expertise, qualifications, experience, intangible personal qualities such as drive and ambition and interpersonal skills. Outcomes include monetary compensation, perks, benefits and flexible work arrangements. Employees who perceive inequity will seek to reduce it, either by distorting inputs and/or outcomes in their own minds, directly altering inputs and/or outcomes, or leaving the organization.
To illustrate the equity theory using my own experience as an example, let me start introducing my background first. I work as an internal auditor for a global fortune 500 companies for almost two years. Being hired and relocated directly out of The Ohio State University to the company as a minority member, I feel extremely lucky and blessed to be an internal auditor by knowing that internal auditing is the most challenging among all other positions in accounting area. During the first year of the job, we have a very balanced structure team of 11 people: a hub manager, a manager, 2 supervisors, 4 senior auditors and 3 staff members. Being the youngest staff member with the lease experience/pay as well as with English as my second language, I felt being appreciated for contribution and input I made: both supervisors verbally appraised me often for the effort I made in each audit as well as my learning ability; the senior auditor I worked with on audits always taught me new skills and covered me under her wings when I made mistakes; both staff members were all very friendly, helpful and never tried to stack me from the back. Even when I made mistakes on work or office discipline, my manager was always being very considerate and polite in letting me know and I would always listen and avoid making the mistake next time. My manager gave me good reviews for first year by giving a 4% merit increase on my base and told me that I was exactly where he expected me. Even by knowing the fact that I had the least pay among all others, based on being first year new on the job and the amount of contributions I made to the team, I felt being treated fairly. Feeling being appreciated by rewards on money and words, I felt extremely motivated to even work harder and willing to take whatever