Equity and Expectancy Theory

Equity and Expectancy Theory

Gregg Learning 111 views 2019-09-27

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Title Equity and Expectancy Theory
Duration 03:17
Source YouTube
Tags human resource management, public sector human resource management, public service, public sector, human resource, human resources, hr, hrm, people management, management, manage, managers, manager, Equity and Expectancy Theory, Equity, Expectancy, Expectancy Theory, equity theory

Let’s take a look at equity and expectancy theory in compensation. Equity theory explains that an individual’s satisfaction with his or her job is largely (but not wholly) determined by the person’s perception of the fairness of the balance between contributions made by the individual and the rewards received from the organization. To appreciate the significance of equity theory, the weighing of contributions and rewards, consider the foundations and nature of this balance. Its basis is the presumed link between performance and pay, and its dynamic is how (or whether) this linkage operates. While equity theory examines the effect of perceived fairness on satisfaction, expectancy theory examines the role of individual perceptions in determining behavior and offers insights into the choices that people make. In terms of inducing behavior, it includes what is offered, what is likely to be provided, and what is valued by recipients. Equity and expectancy theories mandate, in other words, that policy makers be concerned about more than the absolute amount of money required to fund public service. They must also focus on comparative levels of pay and how these monies are distributed.

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