Abstract:
Equity theory proposes that individuals perceiving inequity seek to restore equity through
appropriate behavior. This research aimed to study the relationship between perceived pay equity
and individual job performance among lecturers in public universities in Ghana. Using a survey of
313 lecturers, we found that employees’ perception of equity in the pay system is a significant
factor in determining their job performance. Therefore, we recommend that managers attend to
equity in the design and implementation of pay systems. Moreover, issues relating to the reward
system should be carefully communicated to employees in order to prevent unnecessary perceptions
of inequity.
