All employees at Q Corp. perform the same exact job. About six months ago, upper management gave all employees hired after January 2013 a 20% increase in base pay. All employees who were hired prior to January 2013 were not given a raise.
Recently, upper management has been noting some differences in performance among the employees. You have been hired to help uncover the problem, explain why the change affected employee behavior to upper management and develop a solution.
In your post, please address the following:
Use equity theory or fairness theory (distributive justice, procedural justice) to uncover and describe the problem. How have these changes affected the employee’s (both new and old) motivation according to the theory you selected? How would you explain this to management?
According to the theory you selected, how could Q Corp. have implemented the 20% raise without causing feelings of inequity/unfairness in the old employees?
In your professional opinion, what can be done to remedy the issues you have described?
Be sure to cite course material (important terms, etc.) in your post to demonstrate your understanding of the particular theory you selected.
