Philosophy of Management

Volume 5, Issue 1, 2005

Real Worlds

Rewards for Results? Equity in a Society of Capitalists

Managers and others have long debated the merits of different reward systems, such as piecework, hourly rates, bonuses, stock options, and the like. They have usually focused on the efficiency of these systems, but they have also had to consider their side effects on relationships, trust, and calls for fair treatment. Such debates local to every organisation play out the issues of rewards and equity in market-based societies as a whole. This paper examines the concept of equity in the distribution of resources in a society of capitalists. It begins with a discussion of the nature of individual capitalism in modern societies. Then, using production and consumption as the two basic functions of a society, it presents a schema for analysing equity. It concludes with a suggestion for overcoming income inequity.