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Question
Justify the following statement.
Principle of equity is important.
Solution
- The principle of equity suggests that employers should give kind, fair, just, and equal treatment to the employees. Managers should be kind, impartial, and fair to their subordinates.
- The principle of equity further states that there should not be any discrimination between the employees while making the payment of wages. The employees working on the same level but in different departments should be paid the same wages.
- The wages payable to employees should not depend on the departments but the level at which they are working, e.g. Foremen should be paid higher wages than that is paid to employees working under them.
- The principle of equity also states that there should not be any discrimination between the employees while distributing work between them. As far as possible, there should be an equal distribution of work. Thus, equality in the treatment of employees boosts morale and develops a sense of belongingness among the employees. It helps to develop loyalty of employees towards the organisation and avoid conflicts.
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