Reference no: EM133372706

Case Study: A successful business maintains effective working relationships. Usually, the human resource department sets policies to establish and maintain effective working relationships. You remember going over these concepts while you were studying at Lambton College. Now comes the time to apply human resource management concepts and organizational behavior to establish and maintain effective working relationships.You are working as the head of Human Resources with FN stores. FN stores recently opened a new store in North York. The new store is struggling and constantly receives bad reviews from clients. So, a team was formed at FN stores to investigate this issue. As a part of this team, you will look at the problem from an HR perspective.You retrieved FN North York store documents to understand this issue better. While browsing through the documents, you realized that the same workers with the same skill level receive significantly different compensation. So, you called the hiring manager to get an insight into what happened at the FN stores branch in North York. The hiring manager explained that an inexperienced HR officer was carrying out the interviews, and he assigned salaries to employees based on negotiation skills. You realized this was a severe problem, so you visited the North York FN store. During your visit, you realized that employees lack team spirit and effective working relationships among team members.You took into consideration your observations and the hiring process insights and decided to establish effective working relationships among the store employees. In addition, you'd like to ensure that these effective working relationships are maintained in the future.
To achieve these objectives, you will go through the following:

What is the "Equity Theory" according to organizational behavior?
What choices do employees have when they perceive inequity? Identify and explain at least two choices.
State and explain the process for establishing pay rates which are deemed equitable.
Explain how you will apply these theories to the current situation and how you will establish and maintain effective working relationships.
Deliverables for This Week's Case Study

Question1: The correct explanation of the "Equity Theory."

Question2: Correct identification and explanation of at least two choices that employees have when they perceive inequity

Question 3: Stating and explaining the process for establishing pay rates, which are deemed equitable

Question4: Correct application of the theories as mentioned above to establish and maintain effective working relationships