Los Amigo Inc.,a clothing manufacturer,believes that employees must be paid above the average market rate.The company aims to provide good customer service and to increase its sales.In this case,which of the following is most likely the reaction of employees working at Los Amigo?

Question

Quizplus · Accepted Answer

One of the purposes of pay is to motivate employees, and they will not be motivated by pay if they think it is unfair. If employees conclude that they are underrewarded, they are likely to make up the difference in one of three ways. They might put forth less effort (reducing their inputs), find a way to increase their outcomes (for example, stealing), or withdraw by leaving the organization or refusing to cooperate.