Leadership qualities: Equity theory
I. Relevant facts
* Equity theory was coined by John Stacey Adams in 1963 on job motivation
* It does not concentrate on the “individual self,” but includes the other employees
* The “self” compares him or herself with other employees in the organization
* When people feel well treated and appreciated in the job place, they get motivated to perform.
* When they are not appreciated, they are demotivated and grow a feeling of disaffection
* The equity theory measures the level of fairness in the workplace by comparing an employee to the others
* The theory does not look at how the rewards exceed the efforts, but looks at the ...view middle of the document...
Using the equity theory, the following problems can be diagnosed.
Fred and Sherry
Fred and Sherry are not motivated to work due to various reasons
* He feels that he is doing a lot of work that than the other employees because he has to repair the CD-ROMs that come with defects from the supply department
* The work of making sure that the CD-ROMs are perfect belongs to Morgan, who seems not bothered by the condition.
* He also feels that Julie does nothing, apart from talking to Morgan the first two hours in the morning, and she does meet her daily goal
* Bill and Morgan come to work late despite that they are not meeting their targets
These issues have frustrated Fred and Sherry, who feel that they are not being appreciated and are working more than the other employees. To make the matters worse, it is the other employees who are frustrating them, and when asked, they point figures at them, especially Fred. Also, even after noticing that Morgan is not performing to his standards, the manager has given him time off to the high school reunion. That means an added backlog to the other employees to cover his absence despite that he does not perform. In addition, despite that the manager knows that Sherry and Fred are hardworking employees; the owner does not recognize their efforts. Instead, he singles out Julie only. The other employees are unhappy happy because they feel that their efforts are not recognized. Sherry is very demotivated and has resolute to leave the company. She has even started to interview with the company’s competitors.
The solutions in this case study will be given according to...