Australian Business Equity Theory Case Study

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Question 1
Describe the components of equity theory and the role of justice

Equity theory is an understanding that people are going to be more likely motivated if they have a perceived sense that they are being treated equally and fairly inside and around the workplace based strongly on the perceptions of those around them (Ambrose, 1992). The actual rewards the members of the organization receive are negligible without also having the overall sense that they are perceived correctly as an individual and are treated fairly around others. In regards to the structure of the theory it comes structured under three basic components; Inputs, Outcomes and referents.
Inputs are the benefaction the team members and employees can make to the business
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The assessor conducts conferences with organizational staff members to ensure they understand what it means to carry the standard and to allow them to continue to be certified as time progresses (Todd, 2005). A report is then generated by the assessor describing weather or not the organization failed to meet certain criteria for classification, as soon as it is agreed upon by the organization that within a set time frame these irregularities will be corrected it will become certified as soon as they are confirmed to have been dealt with. On the other hand the ‘Australian Business excellence framework’ or the (ABEF) is a system developed for integrated leadership and management abilities (Technology, n.d.). It was developed originally due to a call by the Australian Commonwealth Government for Australian business and enterprises to become more competitive bringing Australia in line with other similar organizations throughout the world such as the ‘Malcolm Baldrige Awards criteria’ and the ‘European foundation for Quality Management’s excellence model’ along with various others worldwide. The framework operates by examining an organizations liveliness in relation to a strict criteria based around an approach of self-assessment. The results from this assessment are then reviewed with the goal of enhancing activity using an Approach, Deployment, Results and Improvement (ADRI) cycle. This ‘ADRI’ cycle was structured upon a 22 item scoring assessment containing 7 grouping categories and 12 base

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