Final answer:
Adams's Equity Theory emphasizes perceived fairness in rewards relative to effort, not the absolute value of the effort-to-reward ratio. Davis and Moore's views, and the Difference Principle, further explain how compensation is related to the importance of social roles and the overall impact on societal wealth.
Step-by-step explanation:
Understanding Equity Theory in the Context of Workplace Compensation
Adams's Equity Theory suggests that the perception of fairness in the workplace is critical to employee motivation. Contrary to the assertion in the question, it is not the absolute value of the effort-to-reward ratio that is most important, but rather the perceived value of the rewards relative to the effort and the comparison of this ratio to the ratios of others. Davis and Moore's perspective aligns with this, advocating for a correlation between the importance of a role and the level of compensation it receives. They argue that greater rewards for more crucial social roles would spur individuals to work harder and excel in these fields.
Moreover, the concept of the Difference Principle indicates a moral motivation for ensuring equality of opportunity and compensating inequalities only if they benefit the least advantaged members of society. It acknowledges the reality that certain inequalities can lead to a more productive economy, ultimately improving the wealth of all, particularly the least advantaged.
In practical scenarios, individuals often value rewards based on context, as seen when comparing money found with money earned through hard work. This phenomenon reflects the complexities behind the perceptions of effort, reward, and the value ascribed to each.