Management-Concept of Equity Theory-Free-Samples for Students

Questions: 1.Discuss two limitations of Maslow's hierarchy of needs  model. 2.Explain the concept and discuss the relevance of equity theory. 3.Comment on the relevance of Vroom's expectancy theory's  in today,s economic environment. Answers: 1.One of the key limitations for the Maslow hierarchy of needs is the difficulty for the managers to identify the exact needs of the employees. An average organization will have good number of employees and it will be difficult for the managers to identify the level of needs where all the individual employees are standing. Moreover, according to the Maslows theory of needs, employees will get motivated only when their needs are being fulfilled (Niemala and Kim 2014). On the other hand, for the organization as a whole, it is difficult and impossible to determine the need of each and every employees and meeting them. Thus, this theory have not stated about any holistic steps or measures to determine the needs of the employees as a whole. Another limitation of this theory is the sequence of steps being mentioned by the author is not according to the current business scenario. This is due to the reason that, according to the theory, sequence should be maintained in meeting the needs of the employees. Basic needs to be met first over the esteem needs. However, in the current business scenario, there may be situation where employees do not have the requirement of the recognition and positive relation with their co-workers, rather than they will get more motivated if they are being paid more along with providing more benefits (Donahue et al. 2012). Thus, Maslows theory of need is not applicable in this case. Moreover, in the current business scenario, there are various cases can get emerged where employees will get motivated from a particular need, which may not be in a sequential mode. 2.Equity theory was authored by John Stacey Adams in 1963, which explains the importance of having equity and fairness in the organizations. According to this theory, fairness is one of the key aspects or elements to be considered in order to motivate the employees in their workplace. This is due to the reason that, according to the author, if the particular employee perceives that, they are being treated fairly in their organization in respect to their colleagues, then will have favorable impression and will be motivated and vice versa (Al-Zawahreh and Al-Madi 2012). Thus, this theory states that, it is important for the higher level management in the organization to maintain the equity and fairness with their employees in order to have motivated and engaged employees in the organization. In the current business scenario, the theory of equity is equally relevant due to the reason that, competition is more in the contemporary business organizations. Thus, it is important to maintain the equity among the employees in order to provide equal opportunities to all. Moreover, if the employees are being given equal opportunities, then they will be more motivated to achieve excellence (Bell and Martin 2012). For instance, they will have favorable and positive impression if they can identify that all their colleagues are getting equal opportunities and recognition in the organization. In addition, implementation of this theory also helps in retention of the employees in the organization (Terera and Ngirande 2014). This is due to the reason that, equity theory will help to provide equal and right opportunities for the right employees along with having fairness in the whole process. Thus, the employees will remain with the organization if they are being given desired opportunities. This will eventually help the business organizations to enhance the retention ratio of the employees along with having the right people for the right job. Moreover, the cost being involved in recruiting and training new employees will also get reduced. Another relevant feature of this theory for the contemporary business organizations is the positive relationship between the upper level and lower level management (Ekici 2013). This is due to the reason that, with the implementation of equity theory, ethical standard of the organization will get enhanced due to maintaining the fairness in managing the employees. Thus, the more fairness will be maintained in the organization, the more positive will be the understanding and relationship between the employees and the upper level management. This will in turn enhance the organizational performance. 3.As discussed in the earlier sections hat, the current business scenario is more competitive than it was a few years ago. Thus, effective management of the employees is important to have motivated employees in place. However, according to the major motivation theories, external steps and proxies are being given important to enhance the level of motivation among the employees. On the other hand, Vroom expectancy theory states that, apart from the external factors, internal factors such as the perception and expectation of the employees is also important to determine the motivation level of the employees (Parijat and Bagga 2014). This is due to the reason that, according to this theory, employees may get de-motivated even if they are being provided with all the external elements and facilities. This is due to the fact that, employees may have different perception regarding the particular facility being provided by the organization. Thus, in the current economic environment, Vroom expectancy theory is relevant due to the reason that, it helps the contemporary business organizations to determine the perceptions of their employees in their workplace along with identifying their needs and requirements. Accordingly, managers are being guided to design the strategies to motivate and engage the employees. Thus, this theory helps to align the human resource strategies of the organizations with the requirement and expectation of the employees. The more will be the alignment between the two factors, the more will be the motivation and engagement of the employees. This theory is more important in the current business scenario due to the reason that, the contemporary business organizations are having diversified workforce and different sections of the workforce are having different requirements (Savolainen 2012). Implementation of this theory will help to determine their diverse requirements and designing the strategies ac cordingly. Moreover, the perception of the employees is rapidly changing along with the change in the business scenario. Thus, Vroom expectancy theory will also help to determine the change in the perception of the employees with time. References Al-Zawahreh, A. and Al-Madi, F., 2012. The utility of equity theory in enhancing organizational effectiveness. European journal of economics, finance and administrative sciences, 46, pp.158-170. Bell, R.L. and Martin, J.S., 2012. The relevance of scientific management and equity theory in everyday managerial communication situations. Donahue, D.A., Cunnion, S.O., Balaban, C.D. and Sochats, K., 2012. The all needs approach to emergency response. Homeland security affairs, 8(1). Ekici, A., 2013. Temporal dynamics of trust in ongoing inter-organizational relationships. Industrial Marketing Management, 42(6), pp.932-949. Niemela, P. and Kim, S., 2014. Maslows Hierarchy of Needs. In Encyclopedia of Quality of Life and Well-Being Research (pp. 3843-3846). Springer Netherlands. Parijat, P. and Bagga, S., 2014. Victor Vrooms expectancy theory of motivationAn evaluation. International Research Journal of Business and Management (IRJBM), 7(9), pp.1-8. Savolainen, R., 2012. Expectancy-value beliefs and information needs as motivators for task-based information seeking. Journal of Documentation, 68(4), pp.492-511. Terera, S.R. and Ngirande, H., 2014. The impact of rewards on job satisfaction and employee retention. Mediterranean Journal of Social Sciences, 5(1), p.481.