Providing equitable pay and meaningful work is a more effective way to motivate employees than pay for performance schemes

Topic 

Providing equitable pay and meaningful work is a more effective way to motivate employees than pay for performance schemes

Instructions 

Disagreeing with the statement “Providing equitable pay and meaningful work is a more effective way to motivate employees than pay for performance schemes.”

Answer Preview 

Companies have been successful in applying pay for performance using the fairness in payment without necessarily eliminating the concept of equal pay. From the terms of equity theory, an imperative way of making judgments concerning relational fairness is through the formation of a ratio of one’s perceived investments, or simply the inputs, and perceived rewards, or simply the outcome (Korm, 2011). Under this assertion, it is evident that an organization can offer unequal compensative rewards with full adherence to fairness in the overall payment. According to Low (2016), unfair unequal pay occurs when an organization offers different pay range based on age or gender. In the United States, such aspects of equal pay are attributable to the Equal Pay Act of 1963, which is aimed at eliminating wage disparity based on one’s sex (Bamforth, 2018).

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