Perception of Pay Equity in Public Universities in Ghana: Effect on Individual Performance and Work Behavior

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.