Equity Theory in Human Resource Department - Assignment Example

Equity theory centers on two surfaces: outcome and input. A worker will most probably compare their inputs with the ratio of the outcome. If the worker senses inequality, they adopt corrective measures against it. When there is inequity at the workplace, an employee is likely to lower the organization’s productivity or minimize the job quality which may lead to resignation or absenteeism.

            Equity theory entails human motives and thus it should have an enormous application in order to comprehend organizational behavior. The Human Resource Department (HRD) should consider equity theory under scrutiny. This is because equity theory would help the HRD demystify the behaviors of employees and present them with possible elements that might limit the performance and efficiency of employees as well as the entire organization (Al-Zawahreh and Al-Madi, 2012).

            Organizational HRD and leaders can assist in creating equity perceptions by guaranteeing that there are fair rewards and that workers are treated equitably. Otherwise, when a worker is unaware of a co-worker’s earnings, they are likely to overestimate their salaries, thus perceiving a relationship that is inequitable. This perception may implicate the organization since the employee may reduce their inputs (Buhler, 2002).  

            Equity theory should be carefully considered in a case study such as Healthcare HRD. This is because healthcare has a sustained nursing scarcity, which leads to unequal levels of staffing and dissatisfaction with jobs. The situation is grim in the hospital context where the patient-nurse ratio is high and results in emotional exhaustion (Niles and Niles, 2012). The leaders can provide the employees basic needs such as housing, safety, salary, and job security as well as proper job design (Pattanayak, 2005).