Explain the Equity theory. Provide an example from the case to support any part of your explanation.
Fran Jefferson began her job as the supervisor of the Training Department of Metro Bank and Trust Company almost four years ago. She was generally pleased with the four trainers and one secretary in her unit. Indeed Fran took pride in her ability to create a high morale and high performance unit. This was particularly pleasing to Fran because they were constantly busy and barely able to keep up with the volume of training expected from them.
Then early on Wednesday morning, Fran’s secretary Judy Martin, knocked on Fran’s door and asked to see her. Fran liked Judy and considered the secretary to be one of her “stars”. Indeed, in an effort to develop Judy's talents and abilities, Fran had gone out of her way to give Judy special assignments, including her in all the major planning activities of the department and entrusting her with the administration of certain departmental programs, such as tuition assistance and evaluation follow-through. By now, Judy functioned more as an administrative aide than as a secretary.
It was clear that Judy was upset about something as she seated herself in the chair next to Fran's desk. Slowly, Judy placed a job-posting application form in front of Fran. She would not look her supervisor in the eyes.
Fran was surprised, to say the least. As far as Fran knew, Judy liked both her job and working in the Training Department. In turn, everyone else in the department liked and respected Judy. Fran looked over the form and said casually, "So you want to post for the executive secretary job in the Branch Management Division." She paused. "Could I ask you for some additional information, Judy? I'm kind of surprised."
Judy looked at her clasped hands, thinking. Fran waited.
Finally, Judy looked up and said: "I noticed in last week's job posting that the executive secretary position is graded as a 14. Now that's two grades higher than my job!"
She caught her breath. "You know my friend Mary Johnson works over there. She told me that half the time the secretary sits around doing nothing."
Judy continued, gathering some anger in her look and resentment in her voice. "Look, Fran, you know how hard I work, how hard we all work, around here. I mean, I'm always busy. I don't see why I should work in a job graded at a 12 and work twice as hard and yet not be paid the same as that secretary. The job requirements for the job are just a little higher than mine, and the merit raise you gave me last month hardly helped at all.
Fran listened; then she replied: "It sounds to me, Judy that you're feeling angry because you think you should be paid more for the work you do and that you want to switch jobs rather than put up with things as they are. Am I right?"
Judy nodded her head in agreement.
Fran knew, though, that the Metro job evaluation system was up to date and that the executive secretary position to which Judy referred did require additional background experience, skills, and responsibilities beyond what was needed in Judy's current job. Because her secretary was such a good employee and a nice person, Fran was quite concerned. She felt strongly that moving to the executive secretary job would not be what Judy really wanted, and she hated to lose Judy, especially if her decision was based on faulty reasoning and the move would not be good for her.
Fran tried to figure out what to do.
3) Explain the Equity theory. Provide an example from the case to support any part of your explanation.
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