Description

The equity model is a theory of motivation that suggests that employee motivation at work is driven largely by their sense of fairness. Employees create a mental ledger of the inputs and outcomes of their job and then use this ledger to compare the ratio of their inputs and outputs to others. Inputs may include effort, performance, skills, education, and experience; outcomes generally refer to pay, benefits, and promotions. If employees perceive that their ratio of inputs to outcomes is not equitable with that of their peers. They may become demotivated and dissatisfied with their job.
Equity theory is the idea that individuals are by fairness. And if they identify inequities in the input or output ratios of themselves and their referent group. They will seek to adjust their input to reach their perceived equity. Adams that the higher an individual’s perception of equity, the more they will be, and vice versa: if someone perceives an unfair environment, they will.
The easiest way to see the equity theory at work, and probably the most common way it does impact employees. This is when colleagues compare the work they do to someone else that gets more than them. Equity theory is at play anytime employees say things like, ‘John gets a lot more than me, but doesn’t do nearly as much work,’ or ‘I get a lot less than Jane, but this place couldn’t operate without me!’ In each of those situations, someone is comparing their own effort-to-compensation ratio to someone else’s and is losing motivation in the process.

Brand equity represents the worth of a brand compared to its generic alternatives. It could be its name, logo, slogan, and consumer perceptions about its products and services. Multiple efforts, including marketing, advertising, and packaging, can help a brand establish a long-term relationship with customers and earn loyalty. As a result of brand recognition, businesses make profits through a boost in sales.