Individuals within an organization will themselves understand pay equity as they gauge the fairness of their work outcomes in relation to those of others. Adam’s Equity Theory proposes that when individuals are faced with perceptions of them being unfavorably rewarded in comparison to others, they will try to act to remove the inequity and to restore equity. Underpayment for equal work being performed will result in a loss of work output, employee productivity or attempts to find other more equitable employment, while overpayment for work being performed can result in guilty feelings. Hence, it is important that an employee’s job is to carefully evaluated in order to correctly compensate them for their work. Much of the emphasis that has been placed on pay equity arose out of the struggle of women to win equal pay for their work as they had been receiving discriminatory treatment at work as a result of the patriarchal notions that their place in a society was at home. Job evaluation systems attempt to assess the complexity of a job and not the performance of the employee when performing the job in determining the compensation that needs to be paid. Equity vs. Equality and Merit in Compensation.
Please type your essay title, choose your document type, enter your email and we send you essay samples