The Equity Principle of Management [Explained]

What is Equity Principle of Management?

The principle of equity means all the employees of the organization should get treated with fairness, kindness, respect, and justice. No one should be discriminated against in terms of gender, position, caste, or religion.

This principle states, that the manager should create an environment where employees feel free from biases and inequality. According to this, all employees are equally important to the organization, they should be treated equally.

It is natural that everyone wants to be treated equally, so this principle of equity supports it in the workplace. The manager has to believe that employees’ loyalty and optimum devotion can only be pulled through justice and kindness.

When employees get equal treatment they will have a sense of respect for the organization. When they are treated fairly, they feel happy, satisfied, and motivated. As a result, they are internally motivated to give their best for organizational success. Their fullest effort is the best fuel for organizational success. It further helps to make a better relationship between management and employees.

Thus a manager should never forget to equally treat his employees regardless of their position, sex, or others. He should not be in discriminate, favoritism, biasness, impartiality, etc. among employees. If not employees will not stay in the organization. However, here equal treatment does not mean equal pay for every employee, it means they should be treated equally with respect, kindness, and justice – they should be paid by their job position.

Positive of the equity principle:

• Employee motivation and morale are increased.
• Fair treatment to all is ensured.
• The cordial relationship between employees and management.
• Increased productivity and satisfaction.
• Helps to achieve organizational goals efficiently.
• Employees’ optimum devotion is gained.
• The turnover rate is very low.
• A more pleasing working environment is created.

Results of avoiding equity principle:

• Employees’ motivation and morale are adversely affected.
• The employee turnover rate starts to increase.
• Negatively affects goal achievement.
• No respect for the manager and organization.
• The organization’s environment turns out to be a no-working environment.

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