Teresa 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 Teresa,management should understand and apply

Question

Quizplus · Accepted Answer

The equity theory suggests that employees compare their inputs (such as effort, skills, and experience) and outcomes (such as pay and benefits) to those of others in the organization, and if they perceive an inequity, it leads to dissatisfaction and may result in turnover. In this case, Teresa perceived an inequity in her pay compared to her peers who were well-liked by management, despite her superior performance. To avoid losing other salespeople like Teresa, management should understand and apply the equity theory, ensuring that employees perceive their pay and benefits as fair and equitable compared to their colleagues with similar qualifications and performance.

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