Accounting technicians scheme west africa



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37
(F)
The Equity Theory
This theory, based on the work of Adams (1957) suggests that an individual's motivation depends on his or her evaluation of the equity or fairness of the reward given to him or her. Equity as used in the context of this theory refers to 'ratio between the inputs (i.e, of efforts or skill exerted on the Job) and the rewards (i.e. salary, promotions incentives, etc) compared with the ratio of the rewards received by others performing similar jobs to their inputs This theory implies that employees tend to compare their salaries (and other rewards) for their efforts with what others are receiving for similar job. Their motivation, job


291 performance and job satisfaction tend to improve when they realize that their packages compare favourably with those of others performing similar jobs and exerting similar efforts. However, if they perceive that they are being underpaid as compared to what others performing similar jobs (and exerting similar efforts) are receiving, they develop a feeling of inequity and might try resolving the problem by working less hard. On the other hand, workers who perceive that they are being paid far higher than what others are receiving for similar jobs/efforts tend to work harder.

A.4.3 Reinforcement Theory
The basic idea of this theory is that 'behaviour with positive consequences tends to be repeated, while behaviour with negative consequences tends not to be repeated. The key features of this theory pioneered by Skinner (1984) areas follows a) Employees are motivated by proper design of their work environment and praise for good performance. b) Employees should not be punished for poor performance as this leads to negative results. c) Managers should regularly analyse work environment and remove factors that impede effective performance. d) Provide regular feedback to employees and reward good performance. Table 5.2 comparing the various theories and indicates their use in management.

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