STUDENTS' CORNER - 19
The next principle of management we take for discussion is equity. Equity means, in the organizational context, fairness and it does not mean equality as understood in the common expression. Definitely, for an organization, a junior assistant is not equal to a managing director; they cannot be equal in terms of almost all occupational tasks, responsibilities and remuneration. Their roles in the administration of an organization demand different levels of attention and authority. But, giving them their due is a must; they must be given respect, their salary and other benefits available to them. This sense of fairness is equity.
Equity thus implies justice which includes impartiality. When an opportunity for promotion is there, merit alone must be taken into consideration for promotion. Favourtism, prejudice, hostility which is another form of prejudice, considerations other than professional, occupational, must not influence the decision in choosing the individual for promotion. This is what equity stands for.
Adherence to the tradition of equity in an organizational administration has long-term benefits in the sense that it builds trustworthy image of the institution. First of all, the employee is sure that his efforts will be duly and fairly recognized and rewarded. Recognition encourages an employee to put his best efforts; it inspires confidence in his own abilities and therefore impels him, rather compels him to improve earnestly. This attempt to improve ultimately benefits the organization.
Another very significant advantage is the employee readily believes in the justness of the organization, of the administration. In other words, the institution offers profusely the most desired one of motivation. Motivation infuses dynamism in the job done. And an organization with an established convention of dispensation of equity among the employees finds that it need not take any extraordinary effort to retain the talented employees. Retention is the characteristic attribute of such organization.
Absence of equity in an organization brings in many disadvantages to the organization. Most of the employees will be on the lookout for placements elsewhere, and the sooner is the better. No experience of loyalty can be there in the employees. The consequence will be great turnover and attrition, with no hope of retaining the able and the worthy. All these features will affect the institution which will not be able to climb up on the ladder of performance, comparable with the other competitive organizations.
Viewed against this background of the importance of equity in an organization, it may be put down that a successful and sustaining organization must adhere to the principle of equity. To practice equity is to survive with success.