Abstract

This article recognizes the significance of equity in managerial decisions, particularly as they relate to reward systems. While equity is not necessarily simple to understand nor always easy to achieve, it is a highly desirable outcome. Aids are proposed as means to help in the quest for determining equity in organizations. One provides a standard using mean values against which the individual reward/contribution ratio can be compared; the second is a maximin approach which utilizes a multi-attribute ratio of rewards to contributions. An illustrative example is provided. Potential managerial uses are discussed.

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