On the Application of the Equity Theory to the Management of an Institution

The author holds that relative value comparable to others in the equity theory has both its scientific foundation and its limitations when used to evaluate whether the policy of equity is carried in an institution. Because of the influence of various factors, this comparison is often not objective. The author believes that the sense of equity among the members of an institution relies on their identification with their institution. Through an analysis of the limitations of the equity theory, the author brings up some new ideas about how to eradicate the sense of un-equity among the members of an institution.