Methods and TheoriesEquity Theory and Two-Factor Theory “The conventional definition of management is having the work done through individuals, but the true management is about developing people through work” (Josephson, 2012). In order to build a functioning organizational culture, leaders and managers must set goals to establish healthy and productive relationships with their subordinates. As the case study indicates, management failed to do this. In order to closely examine the process of building relationships between employees and management and analyze this problem, this part of the article focuses on examining two theories: Equity Theory (John Adams ) and the two-factor theory (Frederick Herzberg). According to equity theory, people (employees) subjectively determine the attitude of the reward received for their efforts and then relate it to the compensation of other people doing similar work. If this comparison indicates imbalance and injustice, a person believes that his colleague for the same work received a greater reward. It is therefore necessary to motivate the employee to ...