TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 MINI LITERATURE REVIEW......................................................................................................1 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................7 ARTICLES WEB LINKS................................................................................................................8
INTRODUCTION The role of equity in enhancing motivation and workplace behaviour of employees is quite impactful and beneficial to company. Present report deals with writing mini literature review on the topic “role of equity in human motivation and workplace behaviour. In this, 4 articles have been chosen which are carried under different studies mainly focused on equity theory usefulness in motivating workers and their behaviour at work. Various studies are being conducted by researchers which provide clarity that treating employees on fair basis not only reap out benefits to company but also helps in retain staff. It can be analysed that when staff is treated equally and they are motivated to perform better, people will not leave their jobs. It results into job satisfaction and employee turnover reduces up to a high extent. The studies show clearly that employee’s performance increases at a rapid rate which leads to attainment of firm’s goals in a better manner. By recognition of workers on their contribution to inputs and outputs, they can be motivated in righteous direction leading to appreciating potential employees being beneficial for enterprise in long run. Studies are being analysed on this ground and evaluation is done to provide better organisational effectiveness by treating and appreciating workers on equitable grounds. MINI LITERATURE REVIEW Article 1- The Utility of Equity Theory in Enhancing Organizational Effectiveness According to Al-Zawahreh and Al-Madi (2012), individual’s expected pay is centred to external and internal labour market opportunities in effectual manner. Employees who expect to remain in their existing job for another three years will be motivated to adjust inequities while those who have external job opportunities will switch to jobs as they are least adjusted to inequities. This signifies strong connection among pay equity and work satisfaction. The underpayments and overpayments lower intrinsic motivation level among workers. Equity theory implies that workers who are overpaid try to avoid inequity minimisation techniques resulting in negative consequences in terms of self-esteem. It may lead to devaluation of appropriate outcome of job like monetary compensation. In contrast to this,Lăzăroiu(2015) says that organisation can attain effectiveness when employees are fairly treated on equitable grounds. It can be accomplished when each worker perceivestheir treatmentto be fair relativeto their colleaguesheld on similar position. 1
Employees try to compare themselves with others based on pay equity which ultimately leads to job satisfaction in the best manner possible. Moreover, equity should be exercised as it escalates human motivation and behaviour at the workplace quite easily. It requires organisation to think in favour of workers with a motive to influence them as part of boosting their competency and this helps to achieve common goal of firms. Wilson (2014) argues that equity theory is termed that when an individual perceives inequity, such person would feel or have state of distress. This distressing situation would move workers to act in order to attain or restore equity in the best way possible. This means that greater the inequity, harder individual will strive to attain equity or restore the same. It impacts workplace behaviour and inner motivation stimulates workers to restore equity and then attain desired efficiency in the company. The consequences of inequity are bad because it leads to dissatisfactionamong job, increasesanger and guilt (Pinder, 2014). Employeeswill feel frustrated as they are getting less of what they expect from management as against their input. The anger is diverted towards negative workplace behaviour which is disadvantageous to company as a whole and leads to rise in employee turnover slashing overall productivity of enterprise. Article2-PerceptionsofEquityandJusticeandTheirImplicationsonAffective Organizational Commitment As per the views of Balassiano and Salles (2012), identifying individuals that adds value to firm has become complex task for human resource management. It is required to establish stronger relationship between employees and organisation they work for. Distributive justice is analysed which focuses on main content and seeks for justice at the end. It is mainly based on wages, performance evaluation outcomes, awards, promotions and disciplinary actions as well. The dimensions of everyone are different depending on one’s behaviour (Shen & Benson, 2016). If person perceives results as being fair enough, significance for procedures is reduced indeed. In simple words, unfair procedures are incapable of giving warranty of retaliation and gradually minimises commitment. While, if results are perceived as unfair, employees tend to pour in negative attitude towards organization impacting workplace behaviour. However,Osabiya(2015) says that dissatisfaction increases among employees as they are not motivated. This shows that role of equity has major impact on workers’ motivation and tends to negatively impact behaviour at workplace. Justice mainly represents non-separable part of 2
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lives of humans and as such, labour relations are part of life as well. The labour relations are also non-separablepartofindividual’sorganisationlife.Thisleadstoinfluenceworkersand organisational performance. Employees with good commitment are unlikely to switch to other job and present lower level of absenteeism as well. This helps to attain higher performance for them leading to motivate them and work harder for company and enhances their workplace behaviour in a positive way. Safiullah(2015) arguesthatbalancebetweenemployees’inputand outputat the workplace must be exercised for ensuring that human motivation is accomplished along with positive behaviour. This resolves many of the issues of companies and as a result, organisation’s atmosphere gets positive vibes. However, it is not that easy because perceptions of individuals are different from each other. It might be that intolerance to one might have no effect on other. It means that unfair practices in the eyes of one individual may be fair enough for other due to difference of perceptions (Gerhart & Fang, 2014). In addition to this, work carried out by one person must be appreciated by management in the same manner to which other is appreciated. It would be acceptable; however, if one thinks that he is getting no rewards for valuable contribution, it will lead to imbalance that escalates employees’ dissatisfaction and negative effect on company. Article 3- Old knowledge for new impacts: Equity theory and workforce nationalization Ryan (2016) says that workforce nationalization is a public policy in GCC countries including UAE whereby, local national workforce and expatriates are mostly imbalance. Support of Emiratization (whole national workforce of UAE) show poor results and expatriates make up 85 % of the population to date. It clearly shows high unemployment in UAE among Emiratis. The use of equity theory tends to resolve issues being faced by UAE related to unemployment up to a major extent. It can be said that number of issues could be highlighted hereby. The main goals of economy are to rise the national engagement in the private sector in order to minimise the burden on nation’s government for generating employment opportunities. Moreover, to reduce the reliance of country on expatriates for maintaining highly productive private sector, it is another goal of economy. Wagner III & Hollenbeck(2014) argues that imbalances in equity among UAE nationals, expatriates and government are driving factors for employee’s demotivation. The private sector employmentinUAEismorecompetentthanpublicsectorbecauseofgoodworking 3
environment. This leads to enhance human motivation and business can have good workplace behaviour at the premises. However, public sector and private sector inequity gets attention here. This is because due to Emiratization, expatriates’ employees in public sector are hold on the grounds of inequity. It leads to reduce in human motivation, this shows that role of equity is quite essential on the grounds of motivating workers and attain good workplace behaviour (Caillier, 2014). It helps firms to maintain better productivity and employee turnover reduces up to a high extent. In contrast to this,Van den Broecket.al (2014) emphasizes that increasing education requirements based on getting entry to public sector positions can be relatively easy solution for implementing the same. It can influence and undermine perceptions of reference that can stimulate decision-making in Arab countries. Here, reference means Arab cultural phenomena where people apply effect from their connection of authoritative people. The people see that as corruption and undermine highly efficient people. The emphasis on more strict educational requirements on UAE national people in public sector can seek for necessary inputs for national people in equity framework. More rigorous human resource selection criteria will solve the problem of inequity in both sectors. It can motivate staff and workplace behaviour can be enhanced. Article 4- The Impact of Employee Motivation on Organisational Performance According to views of MUOGBO (2013), good remuneration has been found to be policies of company for increasing their employees’ performance in order to reap profitable benefits. For organisation to attain productivity and compete on favourable grounds, better performance of employees gives company healthy edge over its competitors. It means that effect of high motivation among employees results into rise in business performance significantly. It is in relation with the role of equity that focuses more on fair remuneration packages in order to attain higher performance from workers. It can be said that business should provide extrinsic rewards in company to enhance human motivation which will eventually maximise productivity in a better way. It leads to accomplish desired profits and significantly, workplace behaviour of humans at work gets improved as well. On the contrary,Shieldset.al (2015) argues that employers need to formulate pay policies and procedures which are equitable on the grounds of position. It will enable to attract people, motivate them, retain and satisfy them in the long run. It means that role of equity is significant 4
in stimulating people, motivate and attract them to accomplish good organisational performance. This helps company to maintain long-term relationship with workers as they are committed and motivated to work harder and produce adequate outcomes. Employee performance depends on other factors such as performance appraisals, satisfaction, compensation, job security, training and development (Tu & Lu, 2016). Motivation formulates a firm more successful because satisfied employees are constantly looking for improved practices to do work. Plimmer(2015) suggests that employees are to be treated equal on grounds. If employees consider his input-output ratio to be equal to ratios of his direct peers, state of equity exists. In this situation, person is satisfied and will not imbalance the condition. While, if employees perceive unequal comparison on ratios between him and his direct peers, state of inequity persists. This can lead to employee turnover when employee feels he is treated unfairly. Equity theory is based on beliefs, attitudes and perceptions influence motivation. Treating employees fairly on equitable grounds in terms of pay and other things will enhance their motivation to do better work. Commitment increases from their perspective and as a result, workplace behaviour gets improved. CONCLUSION Hereby it can be concludedthat human motivation and workplace behaviour are based on role of equity. The equity theory classifies that employees usually compare themselves with their direct peers and state of equity or inequity prevails. If they are satisfied with appreciation, state of equity exists and if they perceive unequal appreciation of theirs with other peers, state of inequity prevails. The various articles being analysed in the report have one common point in them such as role of equity is much on human motivation and workplace behaviour. If employees sharing the same position are treated fairly on all grounds like pay equity, appreciation, input-output contribution, business will never lose employees. They will be satisfied, motivated and committed to do hard work for increasing productivity of company being fairly treated on equitable grounds. This means that business may be able to attain desired productivity from their employees by making their contribution to firm’s goals count on equal basis. Moreover, equal treatment will not lead to any conflicts and workplace environment will be channelized with positive energy leading firm to attain profitable margins. 5
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