In: Nursing
As a supervisor or manager equity theory would be the easiest to use:
This theory describes the relationship between the employee’s perceptions of how fairly is he being treated and how hard he is motivated to work. This theory can be defined as the concept in which people derive job satisfaction and motivation by means of comparing their efforts (inputs) and income (outputs) with their co-workers or workers in other firms. Equity theory states that what employee can get from the job with their given inputs and then compare their inputs – outcomes ration with the inputs- outcomes ratios of others.
Assumptions of equity theory applied to business:
The three main primary assumptions of equity theory which can be applied to most business applications are given below:
A. In the concept of ‘’equity norm’’ each and every worker anticipate a fair return for whatever he contribute towards his job.
B. Each and every worker try to determine what his equitable return supposed to be after comparing his inputs and outcomes with his coworkers. This is called as "social comparison".
C. Workers who felt themselves that they are not in equitable situation will reduce the gap of inequity by distorting the inputs or outcomes in their minds (which is called as cognitive distortion) by leaving the organization or by directly changing the inputs or outputs.
As a supervisor or manager herzberg's two-factor theory would be most difficult to use:
According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. The theory is a very practical one and dictates the real world situation. Employees first look after the hygiene factors but after them, employees look for motivation through other means. Companies are required to create a balance of both the factors to motivate employees. Failure to implement any of the motivators will impact the efficiency and motivation level. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”.
Limitations of Two-Factor Theory
The two-factor theory overlooks situational variables
Research conducted by Herzberg stressed upon satisfaction and ignored productivity.
No comprehensive measure of satisfaction was used
The theory’s reliability is uncertain
This theory was ignored by blue collar workers