What Is a Gift of Equity?

Fairness is a sociological term. In law, fairness is one of the basic values pursued by law. Public means public, everyone means equality, and equality means equality, which means equality for everyone.

fair

(Sociology term)

Ann Rand explains "fairness"

People all know the word fair, but they do nt know what fairness is. Fairness is actually a transaction.

Fairness means that it is reasonable and reasonable to handle things, and do not favor one party or individual, that is, everyone who participates in social cooperation bears the responsibilities he should bear and gets the benefits he deserves. If a person bears less responsibility than he should, or obtains more benefits than he deserves, it will make people feel unfair. It also refers to treating people in a reasonable manner in accordance with certain social standards (laws, ethics, policies, etc.), which is an important moral quality of systems, systems and important activities. Equity encompasses the fairness of opportunities, processes and outcomes for citizens' participation in economic, political and other social life

Equity in Economics: The Characteristics of Fair Distribution of Economic Results among Members of Society, Economics

Society needs justice because:

1. Man cannot survive without society. A good society should enable people to cooperate stably and lastingly, and only fairness can achieve this;

2. Social development is inseparable from human development. With fairness, society can provide equal rights and opportunities for people's development, and the survival and development of each member of society can be guaranteed;

3. Mobilize personal motivation

   Fairness theory can be expressed by fair relationship formula. Let a party a and the object b be compared, then when a feels fair, the following formula holds:

   (1) 0p / ip = oc / ic:

   among them:

   op-how you feel about being paid

   oc-how you feel about others being paid

   ip-how you feel about your personal investment

   ic-how you feel about investing in others

   When the above formula is an inequality, the following two situations may occur:

   In this case, he may ask to increase his income or reduce his future efforts in order to make the left increase and become equal; the second method is that he may ask the organization to reduce the income of the comparison target or make it Increase the level of effort in the future so that the right is reduced and tends to be equal. In addition, he may find someone else to compare with in order to achieve psychological balance.

   (2) op / ip> oc / ic:

   In this case, he may ask to reduce his salary or do more work automatically at the beginning. Over time, he will re-evaluate his technology and work situation, and finally feel that he really deserves such a high salary, so the output It will return to the level of the past.

   op / ip <oc / ic:

   In addition to horizontal comparisons, people often make vertical comparisons, that is, comparing the ratio of their efforts to the compensation they receive with the ratio of their past efforts to the compensation they received in the past. He considers it fair only if they are equal, as shown in the following formula:

   0p / ip = 0h / ih:

   Of which: 0p-how you feel about being paid

   oh-how you feel about being paid in the past

   ip-how you feel about personal investment

   ih-how you feel about your personal investment

   When the above formula is an inequality, the following two situations may also occur:

   (1) op / ip <oh / ih When this happens, people will also feel unfair, which may lead to reduced work motivation.

   (2) op / ip> 0h / ih

   When this happens, people will not feel unfair because of this, but they will not feel that they have paid more and take the initiative to do more work.

   The results of surveys and experiments show that the overwhelming majority of the feeling of inequity is due to the comparison that they feel that their pay is too low; but in a few cases, it also results from the comparison that they feel that their pay is too high.

   We have seen that the basic viewpoints of the fairness theory exist objectively, but fairness itself is a rather complicated issue, which is mainly due to the following reasons:

   First, it has to do with personal subjective judgment. In the above formula, both the input and compensation of oneself or others are personal feelings, and the average person always overestimates his own investment and underestimates the investment of others.

   Second, it has to do with the fairness standards held by individuals. The above fairness standards are based on the contribution rate, as well as the demand rate and average rate. For example, some people think that scholarships should be changed to scholarships to be reasonable, some people think that it should be evenly distributed to be fair, and some people think that it is appropriate to allocate according to the degree of economic difficulty.

   Third, it is related to the evaluation of performance. We advocate payment based on performance, and each person should be relatively balanced. How to measure performance? Is it the quantity and quality of work results, or the level of effort and labor involved? By the complexity and difficulty of the job, or by the ability, skills, qualifications and education? Different assessment methods will give different results. It is best to measure according to the quantity and quality of work results with clear, objective, and easily verifiable standards. However, this is often difficult to do in actual work, and sometimes other methods have to be adopted.

   Fourth, it is related to the assessor. Who evaluates performance? This is a leader evaluation, a mass evaluation, or a self-evaluation. Different evaluators will get different results. Because the same organization is often not evaluated by the same person, there will be slackness, avoidance of contradictions, accommodative accommodation, and stereotypes.

   However, the fairness theory has important implications for us: First, not only the absolute value of rewards, but also the relative value of rewards, which affects the effectiveness of incentives. Secondly, we should strive for fairness in the incentive, so that the equation is objectively established, even if there is an error in subjective judgment, it will not cause a serious sense of injustice. Thirdly, in the incentive process, attention should be paid to the guidance of the fair psychology of the motivated people so that they can establish a correct concept of fairness. First, they must recognize that absolute fairness does not exist. Stopping remuneration is the main killer of a vicious circle on equity.

   In order to prevent employees from feeling unfair, enterprises often take various measures to create a fair and reasonable atmosphere in the enterprise, so that employees have a subjective sense of fairness. If there is an enterprise adopting the method of confidential wages, the employees do not know each other's income and expenditure ratios, so as to prevent the employees from comparing each other and creating an unfair feeling.