20 a theory of equitable wage for any occupation

Info icon This preview shows page 11. Sign up to view the full content.

View Full Document Right Arrow Icon
20 A theory of equitable wage for any occupation based on that occupation’s place in the larger social hierarchy is a description of: 1 “line-of-sight” 2 just wage doctrine 3 equity theory 4 tournament theory The correct alternative is 2. See chapter 2, “Cultures and customs” in the prescribed book, as well as the glossary at the end of the book. According to the just wage doctrine , pay structures should be designed on the basis of societal norms, customs, and tradition, not on the basis of economic and market forces. Line-of-sight is an employee’s ability to see how individual performance affects incentive payout. Employees on a straight piecework pay system have a clear line of sight – their pay is a direct function of the number of units they produce; employees participating in profit sharing have a fuzzier line of sight – their payouts are a function of many forces, of which individual performance is only one. Equity theory proposes that in exchange relationships the equality of outcome/input ratios between a person and a comparison other (a standard or relevant person/group) will determine fairness and equity. If the ratios diverge, the person will perceive there to have been unfairness and inequity. Tournament theory proposes that larger differences in pay are more motivating than smaller differences. Pay increases should get successively greater as one moves up the job hierarchy. Differences between the top and the second-highest job should be the largest. Options 1, 3 and 4 are therefore incorrect. 3 CONCLUDING REMARKS I trust that you have found these explanations helpful. You are welcome to contact me if you experience any academically related problems. Wishing you every success in your studies! Mrs M Bezuidenhout Lecturer for MNH306K Department of Human Resource Management Unisa
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern