Equity Theory Video Analysis

Each employee will be paid based on their capabilities rather than on the characteristics of their job. This will provide an incentive for employees to develop their skills and move into other roles.

All employees analyze their environment and strive to be recognized and rewarded for their hard work and dedication they put into the company, in a word they are seeking justice. Justice can be defined as a person receiving what they feel they are entitled to and if they do not receive what they deserve, the situation may boarder on injustice. Unfortunately in today’s society justice and appreciation are not given out to all those deserving (Pinder, 1998). Within the Equity theory there are three justice theories. The first of which is distributive justice, this touches on if the referent feels that the outputs are fair that are given to the employees. This comes into play

Rather, Equity, and the sense of fairness which commonly underpins motivation, is dependent on the comparison a person makes between his or her reward/investment ratio with the ratio enjoyed (or suffered) by others considered to be in a similar situation”(Balancing Employee Inputs and Outputs).

The importance of empathy in any helping profession, medical or social, cannot be overstated. The workers that exemplified it in their practice did the best that they could with their limited resources.

I also believe you have to become aware of other people's feelings and emotions to be able to communicate empathy, as well as other emotions. Many people don’t try to relate to others because they feel they should put their focus on doing their job. You have to be able to show people that you understand what they are going through. We have to learn how to put away our thoughts and feelings and pay more attention to the feelings of others. The company will not be able to function properly as a team if they do not have an understanding of how to relate to the emotions of others.

Emotional intelligence is very helpful in maintaining a healthy working environment through decreasing conflict, increasing harmony and building strong, healthy relationships. Emotional intelligence is defined as the ability to identify and understand self and others’ emotions in a proactive way. Emotional intelligence can be achieved through acceptable behavior and stress management training. Emotional intelligence helps in proactive emotional approach that is efficient in emotional balance management. It is guided by self-awareness, self-management, social awareness and relationship management (PENN Behavioral Health Corporate Services, 2008).

When making compensation decisions, whether it is internal or external, comparisons must be considered. However, employers must carefully balance pay structures, because internal and external comparisons may not converge. Therefore, employers may differ in the way they place priorities on internal and/or external comparison data when they are developing pay structures.

In terms of differences, the two-factor theory presented a set of distinct factors that when experienced, will drive a person (the possibility of promotion or opportunities for personal growth are some examples listed by Herzberg) but equity theory concerns with the perception of an individual, which in the process of comparison, evoke a psychological state that acts as a factor of motivation. Although both theories agree that rewards are motivators, Herzberg and Adams place different levels of emphasis on the impacts that extrinsic and intrinsic rewards

Empathy is being able to understand and share another person’s feelings or emotions. It allows a team to develop trust and understand others. Leaders who express empathy towards their team shows that they truly care about the people within their team.

“Emotional intelligence is the ability to understand and manage our emotions and those around us, therefore, this quality gives individuals a variety of skills, such as the ability to manage relationships, navigate social networks, influence and inspire others. Every individual possesses different level, but in order for individuals to become effective leaders, they will need a high level of emotional intelligence. In today’s workplace, it has become a highly important

…good old street smarts-knowing when to share sensitive information with colleagues, laugh at the boss’s jokes, or speak up in a meeting. In more scientific terms, … [emotional intelligence] can be defined as an array of noncognitive skills, capabilities, and competencies that influence a person’s ability to cope with environmental demands and pressures.1

Money is an important enticement to work motivation. Many people work in order to be able to receive their pay at the end of the month, though others might argue this is not the case. If for instance you take money away, will people still show up for work? The answer to this is no as many people only show up at their work place with the aim of getting some remunerations. The equity theory states that in addition to being an exchange commodity it is also has a symbolic value in addition. In this scenario, a company that pays more to its employees tends to show its competitors that it is more valuable and thus the better pay (Wyld, 2011).

The book “Working with Emotional Intelligence” by Daniel Goleman deals with the emotional assets and liabilities of individuals in organizations. Emotional intelligence is traits that go beyond academic achievement or IQ. As a matter of fact he points out that high academic intelligence can sometimes stand in the way of emotional intelligence. Broadly speaking, emotional intelligence determines how well we handle difficult situation, which cannot be solved by logic, but more by a “feel” for the situation. These attributes are very hard to measure, which is why many standardized tests, whether academic or for employment, fail to measure these attributes, even though these are the one which determine

In our everyday lives, we are constantly interacting with other individuals. These interactions have an effect on our emotions. We have to learn how to identify and deal with these emotions because they have a direct effect on how we deal with issues at work. Individuals can work their way through this process by becoming aware of the importance of emotional intelligence.

From this theory we will see that Outcome / Input Ratio is under rewarded. From Conversation between Researcher and Alby Siegel. We know that Alby get some idea that can input couple of hundred thousand dollar profit across the country, but the company only Outcome or will give Alby for $500. and he feels that the amount of money is an insult. Equity evaluation what company get and what the employee get is really not balanced which the employee feels under rewarded.