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Megatherium Industries Organizes Its Production Employees into Work Teams

Question 44

Multiple Choice

Megatherium Industries organizes its production employees into work teams.Each team member's salary is determined by a combination of his/her seniority in the firm and competencies which he/she has demonstrated.Sissy is angry because she has found out that Max is paid more than she is because he has earned more skill certifications,even though Sissy has consistently worked harder and "gone the extra mile" in completing team projects.Which of the following statements is TRUE?


A) Research has shown that where employees work in teams, it is crucial for the pay system to be closed because of these kinds of idiosyncratic equity perceptions.
B) Sissy is angry because this situation violates her sense of external equity.
C) This is an example of how favoritism can undermine the effectiveness of a compensation system.
D) This situation violates Sissy's sense of procedural justice.

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