Week 8 – Blog Assignment


When people go to their jobs, they are doing so as a means of an exchange of service, where each party (employee/employer) is mutually benefiting. The employees provide their time and efforts to the employer, in return for some form of compensation. If this compensation is determined to not match the value of the employee’s time, they’re productivity may suffer or they might even quit doing the work altogether. This is where it’s essential that the employer and employee have a mutual understanding of the value they consider the work being done is worth. A large part of this is based off of the employee’s perceptions in terms of procedural fairness and distributive fairness to where they decide if the compensation matches to the work (Swift, 2022).

Although I have had limited exposure in this area, I have seen my mother in the last 17 years experience situations where she had to make the determination on if the job was worth the time and energy she was putting in. This has happened several times in positions with lower entry requirements such as working at Costco, as a waste transfer station attendant, or as a bank teller. My mom does not have a college degree but makes up for it in work ethic and people skills. The issue she runs into isn’t that the work is hard to do, there is just an overwhelming amount of it with not enough other hired help. After a significant amount of time trying to desperately keep up, my mom makes the determination that compensation barely above minimum wage is not worth the energy she puts in to doing the work of three people. Instead of getting a bad attitude and not trying, she gives her notice and leaves the company in hopes of finding a better balance.

In making her decision, which is one that thousands of people face due to short-staffed job positions, she unknowingly took into account the concept of Equity Theory. This is a theory where the focus is on determining if the ratio of one’s outputs to inputs is relative to their coworker’s (or industry average’s) outputs to inputs. In all job positions mentioned above, my mom was able to justify there being a negative inequity where the coworker’s and industry’s output/input ratios were greater than the ones she was currently receiving (Swift, 2022).

References:

Swift, M. (2022, November). Lecture 1: Introduction to Compensation. [PowerPoint slides].

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