Question: This case discusses the concerns associated with having a formal base pay system, and communication issues that occur. (For the case, go to www.cengage.com/management/mathis or

This case discusses the concerns associated with having a formal base pay system, and communication issues that occur. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.)

1. What role does equity play in this case?

2. Should companies demand that individuals not reveal their salaries? Why or why not?

3. Comment on the salary system and weaknesses you see in it.

4. As the director, how would you handle Fred?

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1 The equity theory states that individuals judge fairness equity in compensation by comparing their inputs and outcomes against the inputs and outcom... View full answer

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