Human beings are different from other living beings because they have emotions and it is due to emotions that we do not like unequal treatment between two people who are putting same effort whether it’s at home or at a college or at work. Equity theory of motivation tries to address this problem of unequal treatment among employees in a company and its effect on the overall motivation of the employees because slight unequal treatment is present everywhere but when this unequal treatment becomes excessive than it hampers the motivation of the employees in a negative way which can be disastrous for the company as a whole. In order to understand more about this concept, one should look at the advantages and disadvantages of equity theory of motivation –
Advantages of Equity Theory of Motivation
Helps in Reducing Exploitation
The first and foremost advantage of equity theory of motivation is that it helps in reducing the exploitation of the employees because if there are ten workers doing the same kind of work and if company is paying higher salary to 5 workers as compared to other 5 workers than it is nothing but exploitation of those 5 workers who are getting less pay or for that matter if 5 workers are getting 2 lunch breaks and other 5 workers are getting 1 lunch break only than also equality principle is not followed. In simple words, the company should not discriminate between workers doing the same kind of work whether it’s in monetary terms or in working condition terms.
Source of Motivation
When workers know that all workers are getting equal and fair treatment then it leads to motivation in them as they know if they work together as a team than all of them will get good increment as well as good working conditions resulting in better efficiency and effectiveness in their work.
Better Relations between Workers
It leads to better relations between the workers because in the case of companies the biggest reason for altercations between workers is the unfair and unequal treatment given by the company to workers having the same caliber. In simple words, the daily tussle or leg pulling between the workers of proving that they are better than their counterparts will not be there if a company is following equity theory of motivation which in turn will lead to more cordial work atmosphere in the company leading to better output from workers.
Disadvantages of Equity Theory of Motivation
Difference of Perception
The first and foremost disadvantage of equity theory of motivation is that there is difference in perception between company and worker because a worker may think that he or she is working same as other worker but getting less pay but it may be possible that another worker according to company is more effective and efficient than other worker and that is the reason why he or she is getting better pay than other workers. Hence for example, if there are 5 doctors working in a hospital while 4 doctors are giving regular duty but one doctor is in the emergency ward and hospital administration pays higher pay to that doctor than it is justified although other doctors may think otherwise.
Exact Comparison Difficult
Workers tend to compare themselves with others and then they demand the same position or same pay as other workers but we all know that each human is different and workers working in the company are no exception. In simple words unlike products that can be homogenous and hence company can charge the same price for the same product in case of humans such practice is not possible and that is the reason why equity theory of motivation may not prove to be effective.
All other Factors are Ignored
Another limitation of this theory is that it does not take into account other factors of motivation; hence for example, if workers are getting equal treatment in every aspect than it is not necessary that he or she will work efficiently and effectively. Hence for example, if one worker is getting same pay and position like other workers in the company but if he or she gets a good job offer from a competitor company than he or she will leave the company despite company following equity theory of motivation.
As one can see from the above that equity theory of motivation has advantages as well as disadvantages and that is the reason why any company thinking of taking action on the basis of above theory should carefully read above points and then only should take the decision.