This document discusses equity theory and organizational justice. Equity theory, proposed by John Stacy Adams, compares an employee's job inputs and outcomes to other employees' inputs and outcomes. There are three situations in equity theory: output is less than other outputs resulting in underreward inequality; output equals other outputs resulting in equality; and output is greater than other outputs resulting in overreward inequality. Organizational justice includes distributive justice relating employee efforts to incentives, procedural justice giving employees a chance to communicate about evaluation processes, informational justice keeping employees informed about decisions, and interpersonal justice reflecting respectful treatment between managers and employees.

1. EQUITY THEORY
&
ORGANISATIONAL
JUSTICE
By Group10

2. INTRODUCTION TO EQUITY THEORY
 Proposed by John Stacy Adams
 Job inputs compared with job outcomes
 Individual outputs = Other’s output
Individual inputs Other’s input
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3. INPUTS OUTPUTS
Time
Effort
Experience
Education
Commitment
Loyalty
Tolerance
Salary
Pension
Job security
Healthcare
Recognition
Achievement
Appraisals
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4. 3 SITUATIONS OF EQUITY THEORY
OUTPUT < OUTPUT Inequality due to being under rewarded
INPUT A INPUT B
OUTPUT = OUTPUT Equality
INPUT A INPUT B
OUTPUT > OUTPUT Inequality due to being overrewarded
INPUT A INPUT B
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5. REFERANT COMPARISONS
 Self-Inside : Comparing what we get in terms of
rewards and recognition with the work that we
do.
 Self-Outside : Comparing what we get in terms of
rewards and recognition with the work that we
do in our current organization to the same work
that we would have been doing in some other
organization.
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6. 6
 Other-Inside : Comparison with the work that we do with
colleagues in our organization and the remuneration and
the rewards and the outcomes we get with the rewards,
remuneration and outcomes of other people in our
organization.
 Other-Outside : Comparison with the work that we are
doing and the outcomes that we are getting within our
organization to the work that our friends are doing and
the outcomes that they are getting within different
organization.

7. PROS OF EQUITY THEORY
 Source of motivation
 Helps in reducing employee exploitation
 Better relation between workers
 Employee retention
 Cost cutting
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8. CONS OF EQUITY THEORY
 Difference of perception
 Exact comparison is difficult
 All other factors are ignored
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9. ORGANISATIONAL JUSTICE
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DISTRIBUTIVE JUSCTICE
PROCEDURAL JUSTICE
INTERACTIONAL JUSTICE
1.Informational
2.Interpersonal

10. DISTRIBUTIVE JUSTICE
 Perceive fairness of the outcomes
 Direct relation between employees efforts
and the incentives given to them.
 Part of every kind of industry which is not
only beneficial for organizational growth but
also for employee’s loyalty towards their
work.
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11. PROCEDURAL JUSTICE
 Employees who are not satisfied with the
fairness of the outcome, must be given a
chance to communicate with managers to
know about what kind of process is followed
while evaluation .
 Important for every kind of industry to involve
employees in decision making process .
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12. INFORMATIONAL JUSTICE
 Interaction between the manager and employees
where manager provides their employee the key
decisions and keep them informed about the
important organizational issues.
 Specially for informing any bad news to the
employee, which is not comfortable for manager to
deliver and not comfortable for employee receiving
it.
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13. INTERPERSONAL JUSTICE
 Reflects the day to day relation between managers
and employees, whether the employee is treated
with dignity and respect by the managers.
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14. THANK YOU
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