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Sunday, December 8, 2013

Adam's Theory of Inequity 3

In the last byte, we looked at the various strategies one could adopt to handle a situation of inequity in an organization. In today's byte, we look at some extensions to the equity theory.     

If we really look at the theory that we have been discussed, it was really inequity that we were setting as the subject matter and not equity itself. As research has progresses, certain revisions have been suggested to this basic equity theory. One such interesting approach has been suggested by classifying individuals based on their preference for equity. These are:
  1. Equity Sensitive
  2. Benevolent
  3. Entitled
Equity Sensitive people are those individuals who prefer an equity ratio equal to that of his or her comparison other. This sensitivity has a great bearing on the way people spend their free time - it would define whether they would invest the time into the work or do something else.

Benevolent refers to those individuals who are comfortable with an equity ratio lesser than that of their comparison other. The Entitled on the other hand are people who are comfortable with equity ratio greater than that of their comparison others. The Entitled behavior is generally observed in the younger generation of the affluent families. If we were to call Benevolent as givers, the Entitled could be called as takers.

We could remember the above using the following diagram.


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