Adam's Theory of Inequity 2

In the last byte, we looked at Adam's theory of Inequity and mentioned that we could continue the discussion in today's byte.

When in a situation of inequity, and individual could find one of the seven strategies listed below:

1. Alter the person's outcomes
2. Alter the person's inputs
3. Alter the comparison other’s outcomes
4. Alter the comparison other’s inputs
5. Change who is used as a comparison other
6. Rationalize the inequity
7. Leave the organizational situation

Within these strategies, a large number of tactics could be tried out. Each tactic comes with its own pros and cons. The selection of a strategy and a set of tactics is a sensitive issue with possible long-term implications. It is essential to consider the consequences when one chooses a strategy and a tactic to handle the inequity.

Research has indicated that those people who feel that their compensations are equitable have displayed greater job satisfaction and organizational commitment. Thus a lot of the equity theory helps explain important organizational behavior. This theory could also be extended to manage important labor relationships.