Business managers struggle to lay strategies that can improve the performance of their organizations. Expectancy and equity theories are widely used to motivate employees (Kini &Hobson, 2002). knowledge, skills, personality, abilities and experience (Dreher &Dougherty, 2002). He stated that the motivation, effort and performance are linked to a person’s

raw materials to the employees (Dreher &Dougherty, 2002). They can also equip employees with the right skills and give them the necessary support to get the work done. Instrumentality e will get a reward. Managers should let their employees understand their reward system. They should also exercise trust and transparency in the decisions affecting the reward

. The theory explains the relationships between the perception of fairness and worker motivation. In the business, this theory introduces the concept of social comparison (Dreher &Dougherty, 2002). Employees evaluate their input and output ratios based on the comparison with the ratios of other employees. inequity will try to reduce it. The can do this by distorting input and outputs in their mind. They can also distort inputs and outputs physically or by leaving the organization. Thus, inequity has a more reaching impact on employees’ morale, performance, productivity and turnover (Kini &Hobson, 2002). Managers can apply this theory by motivating and appraising their employees fairly. Maintaining equity, leads to increased employees morale, performance, and productivity.