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13 April, 03:16

George has been working as a laborer at a construction company for five years. He is very diligent on the job and has never been late. As his skills have grown, he has become more like the manager of the work crew. He makes sure everyone has the correct tools and information to do their jobs effectively. George is a real asset to the team. Today, George shows up at work to discover a work crew manager has been hired to oversee the crew. He discovers that the new manager is paid $20 an hour. To apply equity theory, what additional information do we need

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  1. 13 April, 03:37
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    We need to know how much George is being paid.

    Explanation:

    Equity theory states that employees are motivated by fairness in the workplace, the definition of fairness here being getting a reward proportional to one's effort, abilities, and job performance.

    George is described as a very competitive worker who has become more like the manager of the crew. This statement tells us that he is likely not formally a manager within the organization hierarchy, and could be getting less than $20 an hour, the compensation that the newly hired manager will receive.

    According to Equity theory, George should at least be paid $20/hr, or even more, because he has been succesful in managing his coworkers even if he does not hold that title.
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