The next principle of
management we take for discussion is equity.
Equity means, in the organizational context, fairness and it does not
mean equality as understood in the common expression. Definitely, for an
organization, a junior assistant is not equal to a managing director; they
cannot be equal in terms of almost all occupational tasks, responsibilities and
remuneration. Their roles in the
administration of an organization demand different levels of attention and
authority. But, giving them their due is a must; they must be given respect,
their salary and other benefits available to them. This sense of fairness is equity.
Equity thus implies
justice which includes impartiality. When an opportunity for promotion is there,
merit alone must be taken into consideration for promotion. Favourtism, prejudice, hostility which is
another form of prejudice, considerations other than professional, occupational,
must not influence the decision in choosing the individual for promotion. This
is what equity stands for.
Adherence to the
tradition of equity in an organizational administration has long-term benefits
in the sense that it builds trustworthy image of the institution. First of all, the employee is sure that his
efforts will be duly and fairly recognized and rewarded. Recognition encourages an employee to put his
best efforts; it inspires confidence in his own abilities and therefore impels him,
rather compels him to improve earnestly. This attempt to improve ultimately
benefits the organization.
significant advantage is the employee readily believes in the justness of the
organization, of the administration. In other words, the institution offers
profusely the most desired one of motivation. Motivation infuses dynamism in
the job done. And an organization with an established convention of
dispensation of equity among the employees finds that it need not take any
extraordinary effort to retain the talented employees. Retention is the
characteristic attribute of such organization.
Absence of equity in an
organization brings in many disadvantages to the organization. Most of the
employees will be on the lookout for placements elsewhere, and the sooner is
the better. No experience of loyalty can be there in the employees. The
consequence will be great turnover and attrition, with no hope of retaining the
able and the worthy. All these features will affect the institution which will
not be able to climb up on the ladder of performance, comparable with the other
Viewed against this
background of the importance of equity in an organization, it may be put down
that a successful and sustaining organization must adhere to the principle of
equity. To practice equity is to survive with success.