As a young person, Millennial if you will, I had a complete understanding of equity theory before even knowing about equity theory. According to Schneider, Gruman and Croutts (2012), “equity theory emphasizes the idea that social and other behaviors are influenced by each person’s perception that social (or other) rewards and costs should be fair.” Today’s environment is such that so many people are trying to get by or make a buck with as little effort as possible. I believe that part of the reason people are so jaded in today’s society is because they believe that what they are getting back from society (i.e. their employer, university, etc.), is disproportionate to what they are putting in.
An article in the European Journal of Economics, Finance and Administrative Sciences examines “equity theory in regard to pay since it is assumed to be one of the essential and most important outcomes” (Al-Zawahreh and Al-Madi, 2012). This article sheds light on what motivates employees to work hard and put in 110%. The idea is that employers not only monetarily compensate their employees appropriately and proportionately to their performance, but they also show appreciation for their employees and make them feel like they are making a difference in the world (or within the scope of their environment).
Furthermore, equity theory can be applied to a student/professor relationship in university. As a student, there is nothing more satisfying than receiving a good grade and praise from the professor that is proportionate to the amount of work you put into an assignment. When said relationship is encouraging, helpful and rewarding, students are more likely to want to continue to please their professor, engage in the classroom and dedicate the time it takes to succeed. Clarke and Cripps (2012) discuss the curriculum and pedagogy in art school: “We found that by attending to relationships and focusing on a plurality of intellect this particular curriculum and pedagogy promotes transformative learning in students studying fine art.” Fostering relationships is pivotal in the true success of the students, which is why I believe that, in equity theory, compensation should be considered more than just monetary, as I mentioned above. Appreciation and involvement go a long way.
One can conclude that equity theory, being the proportionate compensation for work and/or effort put in, is important to further the success and motivation of the individual within their respective environment. In today’s society, and especially in our current political climate, there are many people who are upset with the way our economy has played out the last several years, and who feel disproportionately compensated for their work and time. If we can focus on equality and positive encouragement in all appropriate environments, we would see our society thriving in a more progressive manner.
Sources:
Al-Zawahreh, A., & Al-Madi, F. (2012). The Utility of Equity Theory in Enhancing Organizational Effectiveness. Retrieved September 11, 2018, from https://eis.hu.edu.jo/deanshipfiles/pub105362403.pdf
Clarke, A., & Cripps, P. (2012, May 27). Fostering Creativity: A Multiple Intelligences Approach to Designing Learning in Undergraduate Fine Art. Retrieved September 11, 2018, from https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1476-8070.2012.01736.x
Schneider, F. W., Gruman, J. A., & Coutts, L. M. (2012). Applied social psychology: Understanding and addressing social and practical problems (2nd ed.). Los Angeles: Sage.