A study by Peter Cappelli and Peter Sherer on the effects of two-tier wage plans has found that:
A)lower-paid employees were less satisfied on average than higher-paid employees.
B)employees in the lower tier had lower comparison standards than those in the higher tier.
C)all employees were equally satisfied, irrespective of they pay.
D)lower-paid employees remain dissatisfied until they move into the higher-paying tier.
E)only the actual pay and not the comparison standard influences employee attitudes.

Question

Quizplus · Accepted Answer

A study by Peter Cappelli and Peter Sherer found that the lower-paid employees were more satisfied on average. Apparently, those in the lower tier used different (lower)comparison standards than those in the higher tier. The lower-tier employees compared their jobs with unemployment or lower-paying jobs they had managed to avoid. As a result, they were more satisfied, despite being paid less money for the same work.

A Study by Peter Cappelli and Peter Sherer on the Effects