Principle of equity
What is equity ? Guys, equity and equality are different concepts,
Let's here we discuss :-
• Equity:-
Equity means same kind,same fair,and same treatment to employees in the organisation.
• Equity goes a step further and refers offering varying levels of support depending upon need to achieve greater fairness of outcomes.
• Equity makes sure what is needed and in which quantity to an individual.
• Equality:-
Equality generally refers to equal opportunity and the same levels of support for all segments of society.
• Equality does not look at what is needed for an individual.
• Equality is measurable. It does not vary and neither matter whoever looks at it.
(●you can see the difference by this animated image.)
Now what 'HENRI FAYOL' advocates that all the employees in the organisation must be treated with same fair, same disciplinary rules, smae leave rules, irrespective of their caste , gender, colour, nationality, etc.
Equity doesn't means equal salary to a peon or supervisor but equity means application of same disciplinary rules, leave rules, in the same way irrespective of their grade, position, gender , nationality, etc.
EXAMPLE :- An Indian origin Sunder pichai become CEO of Google.
∆ Positive effects of this principle:-
- Reduces employees turnover.(as employees get satisfaction.)
- Boost the morale of the employees.
∆ Negative effects of this principle:-
- Increase in employees turnover.(Dissatisfaction among the employees.)
- Decreases employees turnover.
- Unhealthy relationship among employees.
- Fair, kind and just treatment to employees.
- No discrimination with employees.
- Same policy and regulations for all employees.
- No preference to male or a person of special religion for promotion.
- Contradicts techniques of differential piece wage system.
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