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Dahasolnce [82]
3 years ago
13

Megan graduated from college three years ago and has been working at Sterba Inc. ever since. A conscientious employee, she has c

onsistently received good performance evaluations. She recently found out that a younger colleague, who was just recruited to her team, is drawing a higher salary than she is for doing the same type of work. Following this discovery, Megan starts coming to work late and her productivity begins to suffer. Which of the following is most similar to the scenario mentioned above based on the equity theory?
A) Dawn starts coming to work early and stays late once she learns that the mid-term review is around the corner.
B) Greg believes he works harder than any of the other members in his department as they often leave the office before him.
C) Lisa starts working longer hours after learning that her co-workers earn less than she does for the same work.
D) Myrtle produces a higher number of units to compensate for the lower quality of her output.
E) Beth submits her resignation after she was passed over for promotion for the second time.
Business
1 answer:
Zarrin [17]3 years ago
4 0

Answer: C) Lisa starts working longer hours after learning that her co-workers earn less than she does for the same work.

Explanation:

The Equity Theory was posited by John Stacey Adams in 1963 and it argued that 2 key components in motivating employees are <em>fairness</em> and <em>equity</em>. This means that employees are more motivated when they feel they have getting the same outputs as their relevant colleagues for the inputs they put in if those inputs are the same as their relevant colleagues as well. If employees have reason to believe that there is no fairness in output, they will adjust their input to match the level of Equity they believe in. This is what Megan did by starting to reduce her productivity in response to not getting the same salary.

Lisa also subscribes to this theory because she saw that she was getting more output for the same amount of input as others. She therefore adjusted her input to be more than theirs so that the output she received would be fairer.

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2. Someone looking to buy a franchise needs to consider the brand's failure rate. For
sdas [7]

Answer:

One possible explanation is that the Blimpie franchisor is working properly since the franchisees are not receiving proper training and support in order to operate the franchise.

Another reason is that the Blimpie franchise model is simply not efficient (i.e. bad) and it is really hard to operate properly.

On the side of the franchisees, they might not have sufficient working capital since they budgeted higher revenues or lower costs. The franchisor shares the blame for this situation, since before establishing the franchise, the franchisor should request that the franchisee has enough enough working capital to operate the business properly.  

6 0
4 years ago
Independent auditing can best be described as:________. A. A regulatory function that prevents the issuance of improper financia
Elden [556K]

Answer:

C. A discipline that enhances the degree of confidence that users can place in financial statements.

Explanation:

Independent auditing includes the process of auditing by an independent auditor. It involves the process of analyzing and examining the financial transactions and records. The company's accounts, the business records, the transactions are all monitored and audited so as to avoid any unprecedented act. It do not indulge any means of profit in the whole process. Independent auditing is adopted by the shareholders in order to protect from any sort of frauds or unacceptable claims made in terms of financial records.  

8 0
3 years ago
How does dr.king relate James and John to everyone else?
vodomira [7]

Because Dr. King and James and John are all civil rights activists.

Civil rights activists protest against something that is not right.

~~~ Catal Hoyuk ~~~

6 0
3 years ago
For each of the following kinds of insurance, give an example of behaviour that can be normal hazard and another example of beha
algol13

Answer:

Health insurance: working without safety equipment

Car insurance: reckless drive

Health insurance: withhold of the information that the insured is a smoker

Car insurance: withhold of the information that insured lives in neighborhood with high crime levels

Explanation:

Moral hazard relates to the behavior that enlarges the possibility of occurrence of undesired events that is insured. In health care the example could be a person that does risky jobs without wearing safety equipment. That is something that can easily lead to that person's deterioration of health at job. In car insurance, that can be reckless drive of an insured. Adverse selection happens when for instance signee of policy insurance withholds certain information, whose revelation would have potential elevating effect on paid premiums. In healthcare it could be non-disclosure of the information that the insured is a smoker, where in the application says otherwise. In car insurance it could be withhold of the information that the insured lives in the neighborhood with high crime level, while in the policy it is stated otherwise.

5 0
3 years ago
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and co
babunello [35]

Based on the probability distributions of the funds and the correlation, the following is true:

  • Investment proportions would be 33% Equity and 67% debt.
  • Standard deviation would be 21.16%.

<h3>What would be the Investment proportions?</h3>

The expected return can be found as:

= (Return on stock x Weight of stock) + (Return on debt x Weight of debt)

As we already have the return as 12%, we can solve the formula for weights :

12% = (16% x Weight of equity ) + (10% x Weight of debt)

12% = (16% x W of equity ) + (10% x (1 - W of equity))

12% = 0.16W + 10% - 0.1W

2% = 0.06W

W = 2% / 0.06

= 33%

Equity is 33% so Debt is 67%.

<h3>What would be the standard deviation?</h3>

= √(Weight of stock ² x Standard deviation of stock ² + Weight of debt ² x Standard deviation of debt² + 2 x standard deviation of stock x standard deviation of debt x Correlation x weight of stock x weight of debt )

= √(33%² x 34% ² + 67%² x 25%² + 2 x 34% x 25% x 0.11 x 0.33 x 0.67)

= 21.16%

Find out more on portfolio standard deviation at brainly.com/question/20722208.

8 0
2 years ago
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