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Ob-1. How Can Equity Theory Explain the Motivation of Employees Working at Xandria?

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Ob-1. How Can Equity Theory Explain the Motivation of Employees Working at Xandria?
ob 1. How can equity theory explain the motivation of employees working at Xandria?

In case study, Xandria Pharmaceuticals is a Chinese researcher and manufacturer of pharmaceutical products in HK. Their goal is to produce the highest quality products with the minimum negative impact on the environment, which is an inspiration to their 150 employees. While some mission statements are meaningless general statements, Xandria’s “green” philosophy guides all decisions. In following, this essay will discuss the case study about motivation of employees working through Adams’s equity theory identified. These are including their formed three of different situations: equity, underpayment equity and overpayment equity and their organizational justice identified.

Adam’s equity theory is holds that motivation is a function of fairness in social exchanges. That subject mentioned that people are motivated by their need for fair treatment said by Katzell and Thompson (1990) and Organ et al. (2006). That means like input -disbursement is equal the outcome. Outcome (O) illustrates anything an individual obtains from an organization or a job as like pay, benefits, job security, accomplishment, recognition. Input (I) represents anything an individual gives to his or her organization of job as like time, effort, knowledge, skill, work behaviors. There are 2 Outcomes and 2 Inputs, personal Outcome (Op), referent other Outcome (Oo), personal Input (Ip) and referent other Input (Io). Their formula of theory basically should have three types. First is an equitable situation as Op/ Ip = Oo/Io. Secord is negative inequity situation (underpayment equity) as Op/ Ip < Oo/Io. Third is positive inequity situation (Overpayment equity) as Op/ Ip > Oo/ Io. Refer to case study, they have formed 3 different situations on equity theory is following.

Equity situation can be found in case study. While the surf’s up, Xandria urges the employees to produce the

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