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  • MANAGING EQUITY DYNAMICS THROUGH REFERENT COMPARISONS

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    Abhishek Tiwari
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    Vijay Menon felt demotivated by his annual performance review. According to equity theory, he likely felt under-rewarded compared to his coworker Rahul Kapoor. Equity theory states that individuals compare their inputs and outcomes to others, and feel inequity when the ratios are not equal. When perceiving inequity, one can change their inputs, outcomes, perceptions, or choose a new referent. Here, Menon decided to reduce his effort to match Kapoor's perceived lower pay and effort, demonstrating the theory.

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    CASE STUDY ON MOTIVITATION

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    Vijay Menon felt demotivated by his annual performance review. According to equity theory, he likely felt under-rewarded compared to his coworker Rahul Kapoor. Equity theory states that individuals compare their inputs and outcomes to others, and feel inequity when the ratios are not equal. When perceiving inequity, one can change their inputs, outcomes, perceptions, or choose a new referent. Here, Menon decided to reduce his effort to match Kapoor's perceived lower pay and effort, demonstrating the theory.

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    Download as PPTX, PDF, TXT or read online from Scribd
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    3 views10 pages

    MANAGING EQUITY DYNAMICS THROUGH REFERENT COMPARISONS

    Uploaded by

    Abhishek Tiwari
    Vijay Menon felt demotivated by his annual performance review. According to equity theory, he likely felt under-rewarded compared to his coworker Rahul Kapoor. Equity theory states that individuals compare their inputs and outcomes to others, and feel inequity when the ratios are not equal. When perceiving inequity, one can change their inputs, outcomes, perceptions, or choose a new referent. Here, Menon decided to reduce his effort to match Kapoor's perceived lower pay and effort, demonstrating the theory.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 10

    MANAGING THE EQUITY DYNAMICS

    The annual performance review had a demotivating effect on Vijay Menon. Briefly discuss the motivational theory that best describes Menon's response to the appraisal.

    Equity Theory
    Individuals compare their job inputs and outcomes with those with those of others and then respond to eliminate any inequities.

    Equity Theory

    Ratio Comparisons

    Perception

    O/IA < O/IB

    Inequity due to being under rewarded

    O/IA=O/IB

    Equity

    O/IA > O/IB

    Inequity due to being over rewarded

    O/IA represents the employee and O/IB represents relevant others.

    The six choices that employee makes when they perceive inequity
    Change their input Change their outcomes Distort perception of self Distort perception of others Choose a different referent Leave the field

    Referent is the person with whom the comparison is made. The referent in this case is Rahul Kapoor which is an example of Other-inside referent. As Menon was under rewarded this negative tension provided him with the motivation to do something to correct it. Due to which he decided to put in less effort so as to bring about a perceived equity of pay between Kapoor and himself which is a combination of 1st and the 3rd choices mentioned above.

    Explain in what other ways Menon could have reacted to the outcome of the performance appraisal.

    Another Approaches to the problem


    If Mr. Bajaj allows, ask for a procedural justice so as to understand the process going into the appraisal. If the above situation is not possible then there are two ways of reacting towards it:1. Optimistic approach- Work with the same dedication and then wait for another appraisal time. 2. Complaint to the higher people in the hierarchy about the biased decision of Mr. Bajaj.

    What are the moderating variables that affect individual when they choose their referent?

    Some of the variables are: Gender Length of tenure Level in the organization Amount of education or professionalism Dedication towards the work So, in our case Menon has every variable in common with Kapoor so the level of inequity is elevated.

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