An organization gives a 1% raise to everyone annually, and many employees are upset by this practice, so they have no motivation to work hard. Why are employees upset and unmotivated?
A) The practice is not consistent with an optimal experience
B) The amount of the raise is too small; a raise of at least 3% is needed to motivate
C) Everyone is treated the same; no distinction is made based on performance
D) There is no communication about why everyone gets a 1% raise

Question

Quizplus · Accepted Answer

C) Distributive justice and equity theory may both apply in this situation where equal is just not fair. Across the board raises make no discrimination between high or low performers. The low performers are not motivated to work harder because they still get a reward and the high performers get the same reward as the low performers, so they are not motivated to put in extra effort because they aren't rewarded for it.

An Organization Gives a 1% Raise to Everyone Annually, and Many