What is Equity Principle?
The principle of equity states that all the members of the organization should be treated with fairness, kindness, justice, and respect.
It restricts treating employees in terms of position, age, gender, religion, and so forth which devalues an employee.
This principle describes that managers must realize that maximum loyalty and devotion of employees can be extracted only when they feel treated with fairness and justice.
Managers should create a working environment free from discrimination and biases. It assumes every employee is equally important to the organization.
Equity often confuses equality.
But they are to some extent different, equality means giving everyone the same things and equity means fairness in every situation. Equity ensures fairness at every level and department of the workplace.
Everyone seeks a respectful environment in the workplace.
When employees feel treated fairly – it builds a sense of responsibility, they become self-motivated, they have a positive image of the organization, and they automatically devote their best efforts, and relationships also strengthen between management and employees.
On the other hand, unfair treatment, discrimination, or favoritism certainly affects the overall performance of the organization.
Most of the employees do not want to be a part of such an organization, employee satisfaction decreases, productivity lowers, and employee turnover reaches its highest peak.
Thus by the equity principle of management, a manager should maintain a working environment where the extent of equity is greatly realized.
In addition, it emphasizes equal treatment to employees in terms of who they are and it does talk about equal payment to everyone.
Advantages of Equity Principle
The equity principle fosters a positive and productive workplace by ensuring fairness, motivation, and alignment with organizational objectives.
The following are the key benefits of this principle:
Ensures Fair Treatment
The equity principle promotes fairness and justice in the workplace, ensuring that all employees are treated with respect and without bias, regardless of their position or background.
Optimizes Employee Devotion
When employees feel they are treated equitably, they are more likely to be committed and dedicated to their work, contributing to higher productivity and better organizational outcomes.
Related: 14 Principles of Management
Increases Motivation and Morale
Fair treatment boosts employee morale and motivation.
When employees perceive fairness in their treatment, they are more likely to stay engaged and perform at their best.
Generates a Sense of Responsibility
Employees who are treated equitably tend to feel a greater sense of responsibility toward their roles.
They recognize that their efforts are valued, leading to increased accountability and ownership of their work.
Strengthens Management-Employee Relationships
The principle of equity fosters trust between management and employees.
By treating everyone fairly, the relationship between the two becomes more collaborative and supportive, improving overall workplace dynamics.
Supports Achievement of Organizational Goals
When employees feel valued and fairly treated, they are more aligned with the organization’s objectives, leading to higher performance and a greater likelihood of achieving goals.
Read More: Scalar Chain Principle
Consequences of Avoiding Equity Principle
Avoiding the equity principle leads to a toxic work environment, low morale, and higher turnover, ultimately harming organizational success.
Discrimination and Unfair Treatment
Without equity, employees may face bias or favoritism, leading to a discriminatory environment where some are treated unfairly, causing resentment and dissatisfaction.
Lack of Respect for the Organization
When employees perceive unfair treatment, they lose respect for both management and the organization as a whole, leading to a breakdown in trust and a negative workplace culture.
Decreased Employee Satisfaction and Productivity
Unfair treatment lowers employee morale, causing dissatisfaction.
As a result, employees are less motivated and productive, impacting overall performance and efficiency.
Higher Employee Turnover
Employees who feel they are treated unfairly are more likely to leave the organization, leading to high turnover.
This not only disrupts operations but also increases the cost of hiring and training new employees.
Read Next: Discipline Principle of Management
Joshep Mahesh holds Bachelor in Management (BiM) Degree. He loves to share his business knowledge in his free time.