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We want fairness in our lives, whether it is in our social relationships or in our rewards for work. Equity theory predicts that people seek equitable rewards, or that people should be rewarded in proportion to their effort. Thus, in comparison to our coworkers, if we work harder, we expect higher compensation. If we believe we are being overpaid or underpaid, we are motivated to restore equity by working more or less (Greenberg, 1982).
In his 1988 study of equity in the workplace, Jerald Greenberg measured productivity of employees of an insurance company when they were temporarily moved to a different office because of construction. The temporary offices belonged to employees that were higher, lower, or equal in rank to the subjects. Greenberg found that those employees assigned to the higher-rank offices increased productivity, and employees assigned to lower-rank offices decreased productivity. The employees presumably felt that they were being rewarded (high-rank office) or punished (low-rank office) and needed to adjust their performance to match their compensation. In general, we are motivated to ensure fairness in our lives. |
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