CIMA E2 Syllabus B. Managing people performance - Equity Theories - Notes 10 / 19
Adam's Equity Theory
This focuses on employees' feelings of how fairly they are treated when compared to others.
Fairness is a contingency issue and the main element in achieving it is equality of opportunity.
Salomon’s theory of equity of payment
It focuses on factors such as supply and demand, contribution to the organisation etc. It is based on these factors that an equitable relationship can be judged.
Equal opportunities and diversity in the workplace are often confused. The differences between them are:
| Equal opportunities | Diversity |
|---|---|
| Objective of removing discrimination | Maximising potential |
| Issue for disadvantaged groups | Relevant to all employees |
| A Human Relations role | A managerial role |
| Relies on proactive action | Does not rely on proactive action |
Successful management of diversity requires an organisation to take specific measures. It includes encouraging flexibility in the treatment of all employees irrespective of their race, gender, etc AND training managers in fair appraisal methods.
The UK Equality Act 2012 aims to remove discrimination in the workplace and in the wider society.
It makes it illegal to discriminate on the grounds of age, disability, race, religion, sex, sexual orientation, pregnancy, marriage/civil partnership and gender reassignment.
It is also unlawful to discriminate against part-time workers.