...Wiwoloku Introduction There are two main theories applied to relationships, Social Exchange Theory and Equity Theory underpin commonly used behavioural therapies such as Cognitive Behavioural Therapy, Enhanced Cognitive Behavioral Therapy and Integrative Cognitive Behavioural Therapy. More recent studies in neuroscience and behavior and the importance of language have led to the development of Relational Frame Theory and Acceptance and Commitment Therapy as an alternative approach. In this essay I will outline the relationship models comparing and contrasting them Social exchange theory Social exchange theory analyses interactions between two parties by examining the costs and benefits to each. The key point of the theory is that it assumes the two parties are both giving and receiving items of value from each other. Under this theory, interactions are only likely to continue if both parties feel they coming out of the exchange with more than they are giving up that is, if there is a positive amount of profit for both parties involved. The Social Exchange Theory by Thibaut and Kelly (1978) originates from economy sociology and psychology. It is also a well know theory in sociology that explains the variations and modifications of social relationships development between individuals. The social exchange theory assumes that all human relationships are a matter of costs and rewards and people evaluate the worth of their relationship to make a rational decision of whether or not to...
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...Assignment #5 – NEW AND IMPROVED REWARDS AT WORK Leslie Medlock June 15, 2012 Total Rewards - HRM 533 Dr. Judie Bucholz, Instructor Assignment #5 – New and Improved Rewards at Work 1. Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. The innovations in employee benefits can improve the overall competitive compensation strategy of the organization tremendously in a positive manner due to the employee benefits strategy directly contributes to the success of an organization by attracting and retaining good employees. The benefits offered by an organization are an extremely important part of the puzzle in order for an organization to retain their top talent and for the organization to be competitive in the job market and the success of the organization. In order for the success to take place an organization must present itself differently than others; the employee benefits tied into the competitive compensation strategy is a very successful differentiator to make this happen. Some examples in which an organization could implement in reference to benefits to improve the overall competitive compensation strategy: • Education Benefit – This is plan in which help an employee save money and prepare for their child (ren) education. This benefit could cover the child (ren) tuition, room and board, book and supplies. • Scholarships – Which would be paid by the organization that...
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...DEPARTMENT OF MANAGEMENT SCIENCES ORGNISATIONAL BEHAVIOUR ASSIGNMENT TOPIC: EQUITY THEORY SUBMITTED TO: MS. SHAISTA JABEEN SUBMITTED BY: SONIA TAUHID 848 BBA-VIII INTRODUCTION TO EQUITY THEORY There was a time when employers thought employees to be just another input required for production of output, that is, goods and services. This thinking was changed with the research conducted known as Hawthorne Studies, by Elton Mayo from 1924 to 1932. This study showed that employees are not just motivated by the money. Thus, the Hawthorne Studies initiated the human relations approach to management and the needs and motivation of employees was the primary consenter of managers. Equity theory helps propose the idea about individuals who think of themselves as over-rewarded or under-rewarded. These individuals will experience distress that tries to restore balance. Equity thus measures the contributions and benefits earned by each individual. It is not necessary one needs to put in exactly the same contribution as the other partner, as long as there is a balance between contributions and benefits. Thus, every individual employee feels his contribution and work needs to be rewarded with equal pay. If the individual feels underpaid, s/he will come under distress and feel hostile towards the company. To avoid this feeling of hostility, equity theory comes into play. DEFINITION OF EQUITY An individual will consider that he is treated fairly if he perceives the ratio...
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...Selling Motivation: An exploration of the effects on Job Satisfaction and Performance via Equity Sensitivity Construct Subject: Managing People in Organization ------------------------------------------------- Table of Contents 1. Purpose of the Document 4 2. Executive Summary 5 3. Introduction 6 3.1. Key Focus 6 3.2. Independent and Dependant Variables 6 3.3. Structure of the Paper/Document 6 3.4. Overview of the Organisations/Companies 6 4. Methodology 7 4.1. Secondary Data Collection 9 4.2. Primary Data Collection 9 5. Findings 10 5.1. Secondary Data Findings - Literature Review 10 5.2. Primary Data Findings - Survey Findings 16 5.3. Analysis 25 6. Conclusion 27 7. Recommendations 28 8. Bibliography 29 Appendices 30 8.1. Appendix 1 – Survey Questionnaire 30 8.2. Appendix 2 – xxxxxx 32 ------------------------------------------------- Table of Figures Figure 1: Equity Theory (Al-Zawahreh & Al-Madi 2012) 12 Figure 2: Predicted job satisfaction levels for equity sensitivity orientations (Huseman et al 1987) 15 Figure 3: Representation of the Preference Groups in Company X 17 Figure 4: Representation of the Preference Groups within the Total Sample 18 Figure 5: Motivation Level of company X 18 Figure 6: Total Motivation Level of three companies 19 Figure 7: Preference Groups vs Motivation Level in company X 19 Figure 8: Preference Groups vs Motivation Level in all three companies 20 ...
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...EQUITY THEORY Adams' Equity Theory calls for a fair balance to be struck between an employee's inputs (hard work, skill level, tolerance, enthusiasm, and so on) and an employee's outputs (salary, benefits, intangibles such as recognition (and so on). According to the theory, finding this fair balance serves to ensure a strong and productive relationship is achieved with the employee, with the overall result being contented, motivated employees. HISTORY 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. It focuses on determining whether the distribution of resources is fair to both relational partners. Equity is measured by comparing the ratios of contributions and benefits of each person within the relationship. Partners do not have to receive equal benefits (such as receiving the same amount of love, care, and financial security) or make equal contributions (such as investing the same amount of effort, time, and financial resources), as long as the ratio between these benefits and contributions is similar. Much like other prevalent theories of motivation, such as Maslow’s hierarchy of needs, equity theory acknowledges that subtle and variable individual factors affect each person’s assessment and perception of their relationship with their relational partners (Guerrero et al., 2007). According to Adams (1965), anger...
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...organizations must be linked to organizational objectives and strategies. But compensation also requires balancing interests and costs of the employer with the expectations of employees. * A compensation program in an organization should have four objectives: * Legal compliance with all appropriate laws and regulations * Cost effectiveness for the organization * Internal, external, and individual equity for employees * Performance enhancement for the organization * For employers, compensation costs must be at a level that both ensures organizational competitiveness and provides sufficient rewards to employees for their knowledge, skills, abilities, and performance accomplishments. Balancing these facets so that the employer can attract, retain, and reward the performance of employees requires considering several types of compensation | Nature of Compensation | * Compensation is a critical component influencing how and why individuals work at one organization over others. * Employers must be sensibly aggressive with a few sorts of compensation so as to hire, keep, and reward performance of people in the organization. * Compensation is a key factor in attracting and keeping the best employees and ensuring that organization has the competitive edge in an increasingly competitive world. * Without adequate compensation,...
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...PARITY − IS IT FAIR OR UNFAIR? Table of Contents Topic: 2 1.0. Introduction 3 2.0. Q1: Do you justify the decision made by Mr. Sharma? 4 2.1. Equity Theory and Work Motivation 4 2.2. Justify his decision 5 2.2.1. Qualification and His Services 5 2.2.2. Sharma’s Performance 5 3.0. Q2: Do you suggest any measures to stop Mr. Sharma from quitting the job? 7 3.1. Equity in compensation 7 3.2. Rewards 8 3.2.1. Financial rewards 8 3.2.2. Non-financial rewards 9 4.0. Q3: Do you think that there is something wrong with Institute pay practices and the university Grants commissions? If yes, what are they? How do you rectify them? 10 4.1. Expectancy theory 10 4.2. Innovative reward system 11 5.0. Conclusion 13 6.0. References 14 1.0. Introduction Human Resource Management (HRM) is mainly to develop people through work. It is for managerial behavior. It included with human resources planning, recruitment, selection, orientation, training, appraisal, motivation, remuneration etc (Businessdictionary, 2010). Human Resource Management (HRM) is the purpose inside an organization that focal point on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management is able to be performed by line managers. The focus taking place HRM is going on administration people between the employer and employee relationship. Particularly, it engages the imaginative use of people in...
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...The research paper aims to evaluate the reward system used by organisations within different industrial sectors. In the current business era, it is important for business sectors to implement effective reward systems by means of different theoretical understanding so is to retain their employees and motivate them to increase their work capabilities. The paper intends to highlight a brief overview of retail and manufacturing sector and their working pattern especially in case of reward system and theoretical backgrounds. Moreover, it further evaluates the equity theory of Adams and Operant Conditioning by Skinner in regarding their reward systems. It aims to highlight a brief comparison of reward system in retail and manufacturing sector. Overview...
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...SOCIAL EXCHANGE AND EQUITY THEORY Social exchange and equity theory revolve around the balance between efforts and rewards in organizations. The individual-organization exchange relationship addresses the contributions and demands that each party makes in the relationship. A. Demands and Contributions 1. Demands Needs form the basis for the expectations or demands placed on organizations by individuals. Organizations express demands on individuals through job expectations, mission statements, and performance feedback. 2. Contributions Contributions are the basis for satisfying the demands expressed by the other party in the relationship. Individual contributions include knowledge, skills, abilities, and professional contacts. Organizational contributions include status, benefits, income, and affiliation. B. Adams’s Theory of Inequity Adams's developed a theory of social exchange that analyzes inequity in the workplace. Specifically, inequity is the situation in which a person perceives he or she is receiving less than he or she is giving, or is giving less than he or she is receiving. Individuals calculate an inputoutcome ratio for themselves and compare it with an inputoutcome ratio for another person. If the ratios are not equivalent, perceived inequity results. C. The Resolution of Inequity Individuals seek to resolve inequity because it produces tension. The seven strategies...
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...success. When evaluating administrative staff, sales people, and production workers, each department works well utilizing different theories. One theory could not work adequately for all three; therefore, three theories were used. Production workers utilize the Two-factor theory; sales people use Vroom's expectancy theory and the Equity theory works for the administrative staff. Combining all three theories into one organization helps the organization run smoothly, while gaining successful motivation on all levels. Sales People Sales people rely on motivation that is accomplished through a process; this method that best fits them is known as Vroom's expectancy theory. The expectancy theory, as stated by Victor Vroom, is motivation that has a high performance result due to value being placed on the sales person and their ability (2003, p. 20). Sales people are motivated to the degree that he or she believes "(1) effort will yield acceptable performance, (2) performance will be rewarded, and (3) the value of the rewards is highly positive" (2003, p.20). For sales people to reap rewards or benefits, they first need to know the expectancy of their position. During this first stage, the managers will layout the training that is needed and will set their goals. The managers are also responsible for continued follow up and coaching. Often times this type of follow up is accomplished on the sales floor, so they may continue...
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...Importance of Achieving Pay Equity Table Of Contents What is Equity in Organizations? 4 The Equity Theory 4 Inputs 5 Outcomes 6 Importance of Equity in Pay Structure 7 Internal Equity 9 Steps to Achieving Internal Equity 9 Methods Commonly Used 9 Job analysis 9 Job Evaluation 11 Ranking Method 12 Classification Method 13 Factor Comparison Method 13 Point Method of Job Evaluation 14 Strategic Considerations 15 External Equity 16 Steps to Achieving External Equity 16 Compensation Surveys 16 Benefits of Pay Surveys to the Organization 17 Published Compensation Survey 18 Custom Developed Compensation Surveys 19 Compensation Surveys: Strategic Considerations 19 Individual Equity 21 Importance of achieving Individual Equity 21 Methods Commonly Used 22 Merit Pay System Structures 22 Sales Incentive Pay Structures 23 Pay For Knowledge Structures 24 Pay Structure Variations 24 Strategic Considerations 26 Analysis 27 References 28 What is Equity[1] in Organizations? Equity Theory attempts to explain relational satisfaction in terms of perceptions of fair/unfair distributions of resources within interpersonal relationships. Equity theory is considered as one of the justice theories, It was first developed in 1962 by John Stacey Adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs that they bring to...
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...Abstract The purpose of this paper is to determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. Then, it explains how innovative benefits could be tied to specific jobs. After that, it critiques the effectiveness of equity-based rewards systems versus those with more creative approaches and discusses the key elements of integrating innovation into a traditional total rewards program. And last, it recommends a process that optimizes an employee-based suggestion program to continually refresh the total rewards of the organization. 1. Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. In this century, every dimension of life changes so fast. In unison, the way of companies doing business, personal lives of employees and employers, and working environments change, too. To stay in the business, companies need to comply with these changes. Employees have changeable needs and companies need to make employees keep working with their comprehensive benefits. They must find innovative ways of engaging employees that encourage and support their commitment and improve their performance. Otherwise they will be out of the race. Also, in this century, in workplaces the diversity of workforce increases. Companies must understand and address the diverse needs of their workforce to survive, thrive, and stay competitive. For example...
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...Discuss theories on the maintenance of romantic relationships (24 marks) The social exchange theory was developed by Thibaut and Kelly, who suggested that social behaviour is due to the result of an exchange process, where people try to maximise rewards (Such as self-esteem and happiness) from a relationship and minimise costs (such as time, effort and emotional support). The exchange process changes when an individual receives rewards from others; they feel the need to return the favour. If the rewards outstrip the costs, this is seen as a positive sign in the maintenance of a relationship, but if the costs outweigh the rewards, the theory suggests that this could have a damaging effect on maintaining relationships. Thibaut and Kelly claimed that we create a comparison line (a standard against which all our relationships are judged). This referred to whether one person would offer something better or worse in accordance to what we expect from them. So if our current relationships exceed our comparison level, it’s a worthwhile relationship to stay in. However, if our current relationships fail to exceed our comparison level, this means we are dissatisfied with the relationship and may look for an alternative partner. Simpson et al conducted evidence supporting the social exchange theory. They found that participants in existing relationships rated people of the opposite sex as less attractive than participants not in relationships. This suggested that people judge prospects...
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...Reward systems are always criteria to determine the performance of a business as well as individuals contribute to it. A properly calculated and administered reward system can be a real good motivation for quality workman ship or staff performance. Similarly a poorly judged and administered reward system can trigger the “folly of rewarding A while hopping for B” Most of the staff irrespective of the region or activity they indulged seeks to identify the activities which could earn those rewards and always tends to do so. While most of the rewards expected are tangible; intangible rewards also pay back well to an organization where emotional motivational inducement systems are working. The Equity Theory of employee motivation describes the relationship between how fairly an employee perceives he is treated and how hard he is motivated to work. Peter Drucker, an author who specialized in economics, first proposed the link between Equity Theory and employee motivation. The basic idea behind the Equity Theory is that workers, in an attempt to balance what they put in to their jobs and what they get from them, will unconsciously assign values to each of his various contributions. According to the Equity Theory, the most highly motivated employee is the one who perceives his rewards are equal to his contributions. If he feels that he is working and being rewarded at about the same rate as his peers, then he will judge that he is being treated fairly. Victor Vroom's...
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...Compensation In this assignment the upper management has asked Eric Garcia to suggest a new compensation plan specifically for the Puerto Rican team that include: A description of a compensation package for the new employment team, why the pay system will work, what reward package would motivate the employees to increase performance, compensation plan’s benefits to the individual and the company and how the Puerto Rican compensation plan differs from the parent company’s compensation plan. He must propose the plan and a rationale to the Human Resources Department for approval. Compensation package for new employment team The level of pay in a company is one or the most important aspect of the employee; they will pay close attention in this category in terms of fairness. If the employees think the pay level for the job is not acceptable the lack of commitment and mistrust will be reflected in their performance. According to University of Phoenix Week Five Compensation (2012), there are four key challenges of pay planning and administrative system: (1) Understand the pay levels of economics and legal factors. (2) To develop a systematic pay structure. (3) Combine compensation and general business strategy. (4) Address key policy issues. Granting bonuses to new heirs it can offer a competitive compensation package, especially for those with special required skills by the company. Overtime will be provided by request and it can be rotated among the employees so it can be share...
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