Examples of equity theory in the following topics:
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- Equity theory explains the relational satisfaction in terms of fair or unfair distribution of resources within interpersonal relationships.
- Equity theory attempts to explain relational satisfaction in terms of perceptions of fair or unfair distributions of resources within interpersonal relationships.
- Regarded as one of many theories of justice, equity theory was first developed in 1963 by John Stacey Adams.
- Equity theory proposes that individuals who perceive themselves as either under-rewarded or over-rewarded will experience distress, and that this distress leads to efforts to restore equity within the relationship.
- Equity theory focuses on determining whether the distribution of resources is fair to both relational partners.
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- Equity theory plays a role in analyzing organizational behavior.
- Equity theory suggests that individuals who perceive themselves as either under-rewarded or over-rewarded will experience distress, and that this distress leads to efforts to restore equity within the relationship.
- Equity theory proposes that rewards (outcomes) should be directly related to the quality and quantity of employees' contributions (inputs).
- The core concept of equity theory amounts to each party's inputs and outcomes equating.
- Distinguish the core components of equity theory that seek to measure equity accurately and restore equity when appropriate
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- Equity theory is derived from social-exchange theory.
- Equity must be maintained for proper motivation, and managers are responsible for establishing equity within the organization.
- Using equity theory, managers can consider employees' actions in context with desired outcomes.
- For example, if an employee is often late and misses important meetings, resulting in a loss of revenue for the company, equity theory permits that this employee should be punished with lower pay.
- In this situation, equity theory allows management to motivate through punishing employees who do not create the required returns to pay their salaries.
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- Theories of motivation are of course rooted in psychology.
- There are two main cognition-oriented theories: equity theory and expectancy theory.
- Equity Theory is based on the basic concept of exchange.
- Essentially, Expectation Theory and Equity Theory demonstrate the value of rewarding an employee's investment of time and effort with appropriate compensation.
- Frederick Herzberg's Two-Factor Theory is the most well known of the job-oriented theories, despite the fact that it has not been supported by empirical evidence.
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- Fayol was a classical management theorist, widely regarded as the father of modern operational-management theory.
- Another major difference between Taylor and Fayol's theories is that Taylor viewed management improvements as happening from the bottom up, or starting with the most elemental units of activity and making individual workers more efficient.
- In his book "General and Industrial Management" Fayol outlined his theory of general management, which he believed could be applied to the administration of myriad industries.
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- McGregor's main theory is comprised of Theory X and Theory Y.
- Theory Y is in line with behavioral management theories.
- Theory Y managers are generally the opposite.
- McGregor was a lifetime proponent of Theory Y.
- Explain Douglas McGregor's Theory X and Theory Y approach, merging classical and behavioral organizational theories
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- Equity-based compensation—A plan that uses the company's shares as compensation.
- Equity-based compensation is a compensation plan that uses the employer's shares as employee compensation.
- The classic objectives of equity-based compensation plans are retention, attraction of new hires, and aligning employees' and shareholders' interests.
- Internal equity (the idea of compensating employees in similar jobs, and for similar performance, in a similar way)
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- Theories of effective leadership include the trait, contingency, behavioral, and full-range theories.
- Experts have proposed several theories, including the trait, behavioral, contingency, and full-range models of leadership.
- Behavioral theory also incorporates B.F.
- The four major components of the theory, which cover the full range of essential qualities of a good leader, are:
- The father of behavioral theory showed the connection between behaviors and reward and punishment.
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- Organizational theory studies organizations to identify how they solve problems and how they maximize efficiency and productivity.
- Organizational theory then uses these patterns to formulate normative theories of how organizations function best.
- Correctly applying organizational theory can have several benefits for both the organization and society at large.
- Organizational theory examines patterns in meeting stakeholders' needs.
- Define the value and applications of organizational theory from a business perspective.