Equity Principle of Management (Explained)

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Equity Principle

The principle of equity states that all the members of the organization should be treated with fairness, kindness, justice, and respect. It restricts treating employees in terms of position, age, gender, religion, and so forth.

This principle describes that managers must realize that maximum loyalty and devotion of employees can be extracted only when they feel treated with fairness and justice. Managers should create a working environment free from discrimination and biases. It assumes every employee is equally important to the organization.

Equity often confuses equality. But they are to some extent different, equality means giving everyone the same things and equity means fairness in every situation. Equity ensures fairness at every level and department of the workplace.

Related: 14 Principles of Management

It is obvious that everyone seeks a respectful environment in the workplace. When employees feel treated fairly – it builds a sense of responsibility, they become self-motivated, they have a positive image of the organization, and they automatically devote their best efforts, and relationships also strengthen between management and employees.

On the other hand, unfair treatment, discrimination, or favoritism certainly affects the overall performance of the organization. Most of the employees do not want to be a part of such an organization, employee satisfaction decreases, productivity lowered, and employee turnover reaches its highest peak.

Thus by the equity principle, a manager should maintain a working environment where the extent of equity is greatly realized. In addition, it emphasizes equal treatment to employees in terms of who they are and it does talk about equal payment to everyone.

Advantages of Equity Principle:

  • Fair treatment is ensured in the organization.
  • Optimum devotion of employees may be extracted.
  • Employee motivation and morale are increased.
  • A sense of responsibility among employees may be generated.
  • Strengthens the management-employees relationships.
  • Supports the achievement of organizational goals.

Results of Avoiding this Principle:

  • Discrimination or unfair treatment may be seen in the workplace.
  • No respect for the organization by the employees.
  • Employee satisfaction and productivity start to decrease.
  • Higher employee turnover takes place.

Read Next: Discipline Principle of Management

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