Regina worked hard and successfully as a salesperson for B&J Realty Company. For the past three years, she surpassed her peers in quality and quantity of sales. Yet in comparing pay, she discovered that she makes less than two salespeople who are well liked by management. Consequently, she accepted a higher-paying job with B&J's top competitor. To avoid losing other salespeople like Regina, management should understand and apply
A) Herzberg's theory.
B) the expectancy theory.
C) the equity theory.
D) negative reinforcement.
E) Theory Y.

Question

Quizplus · Accepted Answer

The situation described highlights an issue of perceived fairness or equity in pay, which is the core concept in the equity theory. Management should understand that employees compare their inputs (e.g. effort, skills) and outputs (e.g. pay, benefits) with others in similar positions, and if they perceive an imbalance or injustice, they may become demotivated or leave the organization. To prevent this, management should ensure that rewards are distributed fairly, based on objective criteria that all employees can understand and accept.

Regina Worked Hard and Successfully as a Salesperson for B&J