EXERCISE: EXPLAINING PAY DIFFERENCES

6.2 Going around the group from member to member, generate a list of 10 conceivable reasons why Pat may be earning more than Chris. Remember, the reasons can be legal or illegal, wise or unwise.

6.3 Consider whether the theories discussed in the chapterexpectancy theory, goal setting theory, equity theory, and psychological empowermentare relevant to the list of reasons youve generated. Maybe one of the theories supports the wisdom of a given reason. For example, maybe Pats job is more difficult than Chriss job. Equity theory would support the wisdom of that reason because job difficulty is a relevant input. Maybe one of the theories questions the wisdom of a given reason. For example, maybe Chriss boss believes that salary increases are a poor use of limited financial resources. Expectancy theory would question the wisdom of that reason because that philosophy harms instrumentality.

6.4 Elect a group member to write the groups 10 reasons on the board. Then indicate which theories are relevant to the various reasons by writing one or more of the following abbreviations next to a given reason: EX for expectancy theory, GS for goal setting theory, EQ for equity theory, and PE for psychological empowerment.

6.5 Class discussion (whether in groups or as a class) should center on which theories seem most relevant to the potential reasons for the pay differences between Chris and Pat. Are there some potential reasons that dont seem relevant to any of the four theories? Do those reasons tend to be legal or illegal, wise or unwise?