Reference no: EM133138321

You are working as the head of Human Resources with SM stores. SM stores recently opened a new store in Scarborough. The new store is struggling, and it constantly receives bad reviews from clients. So, a team was formed at SM stores, to investigate this issue. As a part of this team you will look at the problem from an HR perspective.In order to get a better insight about this issue, you retrieved SM Scarborough store documents. While browsing through the documents you realized that same workers with same skill level receivesignificantly different compensations. So, you called the hiring manager to get an insight on what happened at SM stores branch in Scarborough. The hiring manager explained that an inexperienced HRofficer was carrying out the interviews, and he assigned salaries to employees based on negotiation skills. You realized that this is a serious problem, so you went out and visited the Scarborough store. During your visit your realized that employees lack a team spirit, and there are no effective working relationships among team members.You took into consideration your observations, along with the hiring process insights and decided to establish effective working relationships among the store employees. In addition, you'd like to makesure that these effective working relationships are maintained in the future.

In order 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 leasttwo 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.