This stunning piece of common sense was wrapped up into a nice psychological theory by Maslow, and is now known as Maslow’s hierarchy of needs. His basic argument is that we are all needs junkies. As soon as we have satisfied our basic needs for food and shelter we start realizing we have other needs? This makes sense in the ordinary world. People in a company near bankruptcy want a leader who can remove fear and create job security. The leader of a big company is probably thinking of his knighthood and leaving a legacy before he is forgotten completely. People have different needs in different …show more content…
It gives an explanation why offering a worker a promotion or increasing salary can demotivate others. When people are treated equally or better are likely to be inspired, when they are not treated equally they are more likely to feel demotivated. Workers are look for equity between the input that they show in a job and the outcomes that they get from it in opposition to the identified inputs and outcomes of others. The thinking in equity theory people are looking for a fair treatment which can make them to be motivated to maintain the fairness among the workers and the business.
Equity theory in business presents the idea of differentiation in social, by which employees assess their comparison of input and output between other workers. Employees who are understand about inequity will try to reduce inequality, by manipulating inputs and outcomes in their own thinking, make changes to the inputs and outcomes, or withdraw from the organization. Equity theory has distant suggestion for employee’s morale, efficiency, productivity, and turnover.
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