Question

Principle of equity are very important.

Answer 1

Management should be both fair and sympathetic to its subordinates. There should be no prejudice between employees when it comes to splitting labor, allocating authority, settling on monetary terms, etc. It is also suggested that pay should be based on the level at which subordinates work rather than the department. Employees of the same level but in different departments should be paid the same compensation. This equity will aid in the prevention of organizational conflicts.