In the last byte, we looked at some classifications based on the equity expectations of the people. In today's byte, we look at some extensions of the equity theory.
The research on equity from the organizational justice has a pretty long history, and has some interesting insight about how an individual's organizational position influences the self-imposed performance expectation. Following briefly summarizes it:
It has been observed that when an individual moves two-levels up in the organizational hierarchy with no increase in pay, he/she creates a higher self-imposed performance expectation than a one-level move up with modest increase in pay! Similarly, a two-level demotion in the organization hierarchy with no reduction in pay creates a lower self-imposed performance expectation compared to a one level demotion with a modest decrease in pay!
This clearly indicates that organizational position is considered more important than pay in determining the level of person's performance expectations.
In extreme cases unintended consequences of such inequity and organizational injustice could be manifested in a dysfunctional behavior. Examples of such behavior are aggressive reactions or other forms of violent and deviant behavior that harm both their colleagues and organization. The fortunate piece of the story is that there are very few such instances.
The research on equity from the organizational justice has a pretty long history, and has some interesting insight about how an individual's organizational position influences the self-imposed performance expectation. Following briefly summarizes it:
It has been observed that when an individual moves two-levels up in the organizational hierarchy with no increase in pay, he/she creates a higher self-imposed performance expectation than a one-level move up with modest increase in pay! Similarly, a two-level demotion in the organization hierarchy with no reduction in pay creates a lower self-imposed performance expectation compared to a one level demotion with a modest decrease in pay!
This clearly indicates that organizational position is considered more important than pay in determining the level of person's performance expectations.
In extreme cases unintended consequences of such inequity and organizational injustice could be manifested in a dysfunctional behavior. Examples of such behavior are aggressive reactions or other forms of violent and deviant behavior that harm both their colleagues and organization. The fortunate piece of the story is that there are very few such instances.
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