current purchasing power
Fairness as suggested by Salamon, who states, firstly that there should be a reciprocity and balance between the parties concerned, that one party should not obtain all the benefits to the detriment of another and that there should be equitable exchange of both substance and behavior, and, secondly, that both parties should receive equal treatment and equal consideration in that the same criteria and judgements should apply to each and the treatment of persons should, as a whole, be consistent.
A general definition of fairness is being impartial, just or free of favoritism. It means treating everyone the same. Someone who is fair values equality and is willing to correct his mistakes. If you follow the rules and are honest and reasonable you are demonstrating fairness.
The idea of fairness is applied in the context of wages, the relationship between work and income, between the pay of individual or group and another. This statement was further explored by Adams (1963) through The Equity Theory states that employees strive for equity between themselves and other workers. Equity is achieved when the ratio of employee outcomes over inputs is equal to the other employee`s outcomes over inputs. Adams, further, suggested that the higher an individual `s perception of equity, the more motivated they will be, and if someone perceives an unfair environment they will be demotivated.
The Equity theory went on to identify four referent groups that people use, these are:
1. Self-inside, this is your own experience within the organization. An example have the conditions, in this case income changed since a new manager started working with you compared to the old one.
2. Self-outside, this is an individual`s experience, but at another organization. This is how an individual looks the job they are doing at the new organization and compares the remuneration packages, that is, whether it has increased or decreased from what they earned from their former organization.
3.
A general definition of fairness is being impartial, just or free of favoritism. It means treating everyone the same. Someone who is fair values equality and is willing to correct his mistakes. If you follow the rules and are honest and reasonable you are demonstrating fairness.
The idea of fairness is applied in the context of wages, the relationship between work and income, between the pay of individual or group and another. This statement was further explored by Adams (1963) through The Equity Theory states that employees strive for equity between themselves and other workers. Equity is achieved when the ratio of employee outcomes over inputs is equal to the other employee`s outcomes over inputs. Adams, further, suggested that the higher an individual `s perception of equity, the more motivated they will be, and if someone perceives an unfair environment they will be demotivated.
The Equity theory went on to identify four referent groups that people use, these are:
1. Self-inside, this is your own experience within the organization. An example have the conditions, in this case income changed since a new manager started working with you compared to the old one.
2. Self-outside, this is an individual`s experience, but at another organization. This is how an individual looks the job they are doing at the new organization and compares the remuneration packages, that is, whether it has increased or decreased from what they earned from their former organization.
3.