Answer to Question #99185 in Management for Mebo

Question

To what extent do you think the equity theory of motivation explain the behaviour of employees in a performance appraisal system

Answer 1

According to the equity theory of motivation, an individual’s fulfillment is based on his discernment and fairness. In this regard, when a firm is applying this theory to conduct a performance appraisal, it must balance the evaluation of workers’ contribution to their jobs with the payment and other rewards linked with their success. Consequently, a highly-rewarded worker is likely to be more motivated and he will continue exploiting his potential for the success of the company