Final answer:
Workplace equity is essential in ensuring that compensation is fairly distributed based on effort, skills, and relevant outcomes, promoting economic equity and preventing negative consequences such as reduced productivity or workplace violence.
Step-by-step explanation:
Understanding Workplace Equity
The extent to which employees perceive that monetary and other rewards are distributed equitably in a workplace revolves around the concept of internal equity, department equity, and external equity. These principles govern how rewards are correlated with effort, skill, and outcomes.
Economic Equity and Compensation
Economic equity is a principle that strives for fairness in compensating employees. If everyone expends the same amount of effort and incurs similar costs during their work activities, the expectation is that they should receive commensurate compensation.
Properly aligned compensation can lead to profits and earnings that are more equitably distributed among employees. The perception of being fairly compensated can lead to a direct benefit, such as improved productivity given the direct involvement and success of the business.
Why is Equity in the Workplace Important?
Workplace equity is important for several reasons. Ensuring that rewards are fair can prevent workplace violence, which can be triggered by feelings of unjust treatment. Furthermore, workplace equity is intertwined with wider economic principles, including economic performance, economic freedom, efficiency, and security, which are all crucial for the stable growth of society.
When it comes to the discussion of inequality and inequity, these are terms that relate to the distribution of resources in a society. They focus on the differences between people's socioeconomic classes, and the struggle against various forms of oppression to ensure that no group is disadvantaged in terms of resource allocation.