You are the new dean of the college of business administration at a major university. One of the first tasks you have undertaken is a review of the salaries of your non-tenured faculty members. You note that the OB instructor has similar credentials to the marketing instructor, but is paid $5,000 less per year for similar teaching duties. You are also aware that faculty members recently found out salaries of all instructors when the payroll office erroneously sent an email with that information attached. Based on your knowledge of equity theory, what reactions to the inequity might you expect, and how would you address them?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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You are the new dean of the college of business administration at a major university. One of the first tasks you have undertaken is a review of the salaries of your non-tenured faculty members. You note that the OB instructor has similar credentials to the marketing instructor, but is paid $5,000 less per year for similar teaching duties. You are also aware that faculty members recently found out salaries of all instructors when the payroll office erroneously sent an email with that information attached. Based on your knowledge of equity theory, what reactions to the inequity might you expect, and how would you address them?

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