Question

Justify the following statement.

Principle of equity is important.

Answer 1

1. The principle of equity suggests that employers should give kind, fair, just, and equal treatment to the employees. Managers should be kind, impartial, and fair to their subordinates.
2. The principle of equity further states that there should not be any discrimination between the employees while making wage payments. The employees working on the same level but in different departments should be paid the same wages.
3. The wages payable to employees should not depend on the departments but on the level at which they are working, e.g., foremen should be paid higher wages than those paid to employees working under them.
4. Equity also says that work should be distributed without discrimination. As far as possible, there should be an equal distribution of work. Thus, equality in the treatment of employees boosts morale and develops a sense of belonging among them. It helps to develop employee loyalty to the organisation and avoid conflicts.