Suppose you work in the HR department of a manufacturing company that is planning to enrich jobs by having production workers work in teams and rotate through various jobs. The pay structure will have to be adjusted to fit this new work design. How would you expect the employees to evaluate the fairness of their pay in their redesigned jobs? In terms of equity theory, what comparisons would they be likely to make?

Employees will evaluate their pay as per the pay of previous employee working on the same position. Employees will also estimate the efforts that he has to put towards the new job, time consumed by the new job and then he must evaluate his pay.

Equity theory states that an individual measure the outcome in terms of inputs. In this case, output is the compensation and input is the qualification. Employees tend to compare their pay on the basis if the compensation revives by the employee who was previously working at the same position, qualification skills, experience, and others. An employee may also compare is pay to the compensation revived by him in his previous job.