Equity Theory Worksheet PDF

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Summary

INGMT 400 Assignment ...

Description

It’s a story .... of perceived inequity This is the application activity for Equity Theory. As the MyMedia emphasized, we make equity comparisons all the time. For this activity, read the following situations and complete the questions by using Equity theory. Listen to the MyMedia and review the PowerPoints before doing this activity.      

For each person you need to indicate what the outcomes (rewards) are. You are NOT to put what they do to get the outcomes, those things go in the Inputs cell. In the Left column you have the person who is making the “equity” comparison and the right column it is the person with whom they are comparing. You need to be sure that you are putting yourself in the place of the person in the left hand column. You are NOT to put yourself in the manager’s position or the person in the right-hand column. For Outcomes you MUST at least include the pay. You may use other items from course material. For Inputs you MUST at least include the specific task. You may use other items from the course material. In the middle column you need to type the correct symbol (equal to =, greater than >, or less than ,<

Marcia

Outcomes:

=

Outcomes: $15

>

Inputs:

$15 Inputs:

-

Better quality services Higher work rate Meet and surpass targets

-

Low quality services Does not meet targets Slow work-rate

Describe the motivation level for Jan based on the Equity Analysis:

-

2.

Since Jan has been loyal for such a long time and her work ethic and commitment to tasks are unmatched, her motivation would be to seek a wage increase due to her enthusiasm and commitment to her work. Another motivation for Jan would be lessening her workload by training Marcia to an exceptional level without providing the pay increase.

Barely a month after Marcia is hired, Carol hires another flower arranger, Cindy. Carol decides to change the wage structure for new hires and is paying the new kid $10/hour. You need to look at Jan and Cindy and Cindy and Marcia. Jan Outcomes:

$10 Inputs:

- Better quality services - Higher work rate - Loyalty

=,>,<

Cindy

>

Outcomes: Minimum wage Inputs:

>

-

Inexperienced Slower No loyalty

Describe the motivation level for Jan based on the Equity Analysis: Since Jan would be the most senior employee for the company, her motivation would be to seek a promotion or

to seek a reduction in the amount of work that is given to her, and evenly divide the work.

Cindy Outcomes:

=,>,<

Marcia

<

Outcomes:

<

$10 per hour Inputs:

Minimum wage per hour Inputs:

-

Inexperienced Slower Not loyal

-

One-month experience Much fast Not loyal

Describe the motivation level for Cindy based on the Equity Analysis: Since Cindy has not been employed for long at the company and the amount of inexperience she has had, Cindy would not be able to have some kind of promotion to a higher position or wage increase.

3.

Greg has been working for six years at a pottery shop, making bowls, flower pots, and so on. For the most typical kind of pot he makes, he is paid a piece rate wage of $10. Business has been good, and the boss hires a new employee, named Peter, who has never thrown pottery before, but is also given the same $10/unit piece rate. Note: this is slightly different than the others because Greg and Peter are paid by piece-rate (i.e. they get paid for each pot). They are not paid a salary. Greg

=,>,<

Peter

Outcomes: - $10/unit - More units made - Higher total income

>

Outcomes:

Inputs:

>

-

Experience Loyalty Less time per unit

-

$10/unit Less units made Less total income

Inputs:

-

No experience Slower rate No loyalty

Describe the motivation level for Greg based on the Equity Analysis: Greg holds more experience in creating pottery and does so in much less time than it takes for Peter. Due to Greg’s work experience, he has the opportunity to create a better variety of pieces in a better time frame, which gives more motivation to Greg, even though they have the same piece-rate. He could, if he wanted, change his prices to reflect the products he makes and the time he puts into them....