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University of Toronto Scarborough
Management (MGH)
Anna Nagy

Individual Assignment-Case Study Analysis Jiang, ZongYuan Nov 17, 2011 MGTB23 L01 998357763 1. Michael feels that he perceives an underpayment inequity in the workplace as his current salaries is lower than the market values that a headhunter had quoted him and comparing with coworkers. Michael’s inputs of his job are his education degree of M.B.A. which was obtained from one of the leading northeastern schools, two years management experience, and he is the only one can work on certain jobs in the firm. The outcomes that he received from firm are promotion and lower salaries compare with his coworkers. The likely comparison people are Walt, Rich and Martha Lohman. Comparing with Walt and Rich, he has more experienced and more responsibility after promotion, but they will be getting $ 12,000 more than him. Martha Lohman, one of Michael’s colleagues, was rehired with higher salary than her former level, and her salary is higher than Michael’s salary even though Michael has more responsibility in the firm. According to Equity Theory, Michael’ equity ratio is lower than the comparison people resulting in Michael feels an unfairness and lower his job satisfaction in the firm. As a result of unfairness and job dissatisfaction, he might lower his input to reach the equity ratio, like poor performance. Or quit the current job. 2. According to Affective Events Theory, Mike and Dave Barton feel unfair and angry after they read the memo, because they find that their salaries are lower than those who have a less experienced and less responsibility. The emotions change in the firm lead to some adverse consequences including lower their performance, lower job satisfaction, and feel tired
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