Effects of Wage Equity and Inequity on Job Performance and Job Satisfaction.
MINNESOTA UNIV MINNEAPOLIS CENTER FOR THE STUDY OF ORGANIZATIONAL PERFORMANCE AND HUMAN EFFECTIVENESS
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Research was conducted which was aimed at testing and clarifying several aspects of equity theory. An experiment was arranged wherein 253 male college students were hired and worked for seven consecutive half-days. For them, the job was real job, and they were not aware that their performance and job satisfaction were being studied systematically in relation to different conditions of equity and inequity. The experimental design allowed tests of equity theory deductions under conditions of both experimentally induced and naturally induced feelings of inequity. The naturally-occurring induction was produced by changing the pay system half way through the weeks work. As a result of the change in pay system, some of the employees, with no change in effort, experienced either more or less net pay--thereby generating feelings of over and under reward. Author