Reference no: EM133403258
Assignment:
This Detailed Case Study Information
Successful business maintains effective working relationships. Usually the human resource department sets policies to ensure the establishment and maintenance of effective working relationships. You remember going over these concepts while you were studying at Lambton College. Now comes the time to apply the concepts of human resource management and organizational behaviour to establish and maintain effective working relationships.
Your company is facing a serious issue; the working relationship is deteriorating among the employees. To maintain the working relationship, you asked employees about their job satisfaction. You realized from the survey that many employees believe that the compensation is unfair. They cite that some employees receive bonuses higher than their yearly salary, even though they do not work as much as others.
You investigate further into this issue and realize that bonuses are distributed in a lottery fashion. In other words, if you are lucky, you will get a bonus regardless of your performance. The computer system picks up the lucky winners at the end of the month in a random fashion. This practice is causing high performers to get dissatisfied and decreases their effectiveness.
You considered your observations and decided to establish effective working relationships among the employees. In addition, you would like to make sure that these effective working relationships are maintained in the future.
To achieve these objectives, you will go through the following:
- What is "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.