Question: Dwight has worked at this job for five years, making lovely flower arrangements, for which he earns $20/hour. He has always met, if not surpassed,
Dwight has worked at this job for five years, making lovely flower arrangements, for which he earns $20/hour. He has always met, if not surpassed, the productivity standard of 20 arrangements/hour. Due to increased business, Michael, the boss, hires a new and inexperienced worker named Jim who, Dwight learns, is getting a starting salary of $20/hour.
- What would equity theory predict to be the approximate number (i.e., 20, greater than 20, or less than 20) of arrangements produced per hour by Dwight in the following days and months? Once he is trained, what number would Jim produce? Explain. Hint: Answer according to equity theory's prediction regarding overrewarded individuals, even though research doesn't support it.
- What would equity theory predict about the quality of Dwights and Jims work? Explain.
- Barely a month after Jim is hired, Michael hires another flower arranger, Pam. Dwight and Jim learn that Michael changed the wage structure for new hires and is paying Pam $10/hour (assume Pam is also aware of her coworkers' hourly wage). Once Pam is trained, what would equity theory predict about the quantity (e.g., Pam > Jim > Dwight) and quality (e.g., Pam > Jim > Dwight) of each of the three workers' production relative to one another? Explain.
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