Jim is a salaried employee whose job is to develop content for ...

[rosent76]

Jim is a salaried employee whose job is to develop content for online Web sites. He discovers that he is paid substantially more than his colleagues even though their jobs and levels of performance are very similar.
 
  According to the equity theory, what impact is this discovery most likely to have on his behavior and performance?
  A) He will reduce the amount of work that he does on a daily basis.
  B) He will compare his earnings to those of another group of employees.
  C) He will increase his productivity and/or the overall quality of his work.
  D) He will seek a position within the company commensurate with his pay.
  E) He will begin to look for a position outside of the company.

Question 2

Following this discovery, Megan starts coming to work late and her productivity begins to suffer. Which of the following is most similar to the scenario mentioned above based on the equity theory?
 
  A) Dawn starts coming to work early and stays late once she learns that the mid-term review is around the corner.
  B) Greg believes he works harder than any of the other members in his department as they often leave the office before him.
  C) Lisa starts working longer hours after learning that her co-workers earn less than she does for the same work.
  D) Myrtle produces a higher number of units to compensate for the lower quality of her output.
  E) Beth submits her resignation after she was passed over for promotion for the second time.

[joshbk44]

Answer to Question 1

C
Explanation: C) When people see themselves as overrewarded, it creates guilt. According to equity theory, in order to reinstate a sense of equity, Jim will change his inputs (exert more if overpaid). He will increase his productivity and/or the overall quality of his work.

Answer to Question 2

C
Explanation: C) Based on equity theory, employees who perceive inequity can change their inputs, i.e., exert less effort if they are underpaid, or exert more effort if they are overpaid. In the scenario, Megan is underpaid compared to her younger colleague and hence changes her inputs by slacking off at work. This situation is best mirrored by Lisa, who works longer hours (changes inputs) after realizing that she is overpaid compared to her colleagues. Dawn's behavior does not relate to the concept of equity. Greg's behavior represents a distorted perception of self. In Myrtle's situation, she is attempting to change outcomes and not her inputs. Beth chooses to deal with the perceived inequity by leaving the field.