COMMERCE 2BC3 Lecture Notes - Lecture 8: Flat Organization, Blue-Collar Worker, A Priori And A Posteriori
14 Dec 2017
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Pay structure: relative pay of different jobs (job structure) and how much they are paid (pay level) Pay level: average pay, including wages, salaries, and bonuses, of jobs in an organization. Job structure: relative pay of jobs within an organization. Pay policies are often attached to particular jobs rather than tailored entirely to individual employees. Equity theory suggests people evaluate the fairness of their situation by comparing them with those of other people. According to the theory, if a person (p) compares his own ratio of perceived outcomes (o) (pay, benefits, working conditions) to perceived inputs (i) (effort, ability, experience) to the ratio of a comparison other (o) ! Perceived inequity may cause p to restore equity ! some ways of doing this are counterproductive, including: o o o. 2 types of employee social comparisons of pay are especially relevant in making pay level and job structure decisions o o.
