Equity Theory Case Study

on equity theory, outline the reasons why some employees might feel that the seniority policy might be considered unfair and why other employees might be interested in maintaining this policy. How would you advise Mr. Klein to adjust his seniority policy to maintain equity?

The seniority policy might be considered unfair to some employees because their view may be that ‘it does not matter how many years you have been with a company. What matters is how hard and well you work opposed to others.’ The view is that seniority in a company should not reflect whether if an employee should be promoted or not. Seniority does not prove how good an employee might be. Seniority is simply the amount of time you have been with a company. When drawing upon the equity theory, people become demotivated when

Being able to lead involves the ability to make decisions, motivate, communicate and most importantly to lead. It is important to see the situation with your own eyes. Observing your staff time to time is crucial because you learn how they behave, their strength and weaknesses and whether if they are good or not. Using this information, you can do weekly or monthly follow-ups with your staff and discuss what they are doing right, what can be improved and talk about any other situation your employee might be going through. If Mr. Klein had payed attention to how Maude and Natalie behaved, he could have followed up and let them know their behaviour was unacceptable. The longer you wait to approach a situation, the more of a habit it becomes which is what happened with Maude and Natalie. Their behaviour got worse gradually because no one directly approached them about it. Also, this information is extremely important when dealing with promotions. Different staff are motivated differently, it can be internally or externally. Maude and Natalie did not have an inner desire to do well. This shows that they lack internal