CHAPTER 4

VALUES, ATTITUDES, AND WORK BEHAVIOUR

CHAPTER LEARNING OBJECTIVES

After reading Chapter 4 students should be able to:

LO4.1 Define values and discuss the implications of cross-cultural variation in values for
organizational behaviour.
LO4.2 Define attitudes and explain how people develop attitudes.
LO4.3 Explain the concept of job satisfaction and discuss some of its key contributors,
including discrepancy, fairness, disposition, mood, and emotion.
LO4.3 Explain the relationship between job satisfaction and absenteeism, turnover,
performance, organizational citizenship behaviour, and customer satisfaction.
LO4.5 Differentiate affective, continuance, and normative commitment and explain how
organizations can foster organizational commitment.

CHAPTER OUTLINE AND TEACHING NOTES

What Are Values?

Values refer to a broad tendency to prefer for certain states of affairs over others. Values
are motivational since they signal the attractive aspects of our environment that we seek
and the unattractive aspects that we try to avoid or change. The words broad tendency
mean that values are very general and that they do not predict behaviour in specific
situations very well. People tend to hold values structured around such factors as
achievement, power, autonomy, conformity, tradition, and social welfare. In the field of
organizational behaviour, values are particularly relevant in the context of generational
differences and cross-cultural differences.

Generational Differences in Values

There are four rather distinctive generations in the workplace today. These generations
comprise what are often called the Traditionalists, the baby boomers, Generation X, and
the Millennials (or Generation Y). These generations are of course demarcated by being
of different ages, but they are also distinguished by having grown up under rather
different socialization experiences. It has been argued that these contrasting experiences,
in turn, have led to notable value differences between the generations. Such value
differences might then underlie the differential workplace assets and preferences for
leadership style.
Recent research points to more similarities than differences in values across generations.
However, there is some indication that Gen X and Y are more inclined to value money,
status and rapid career growth than are boomers. There is also evidence that Gen Ys and
Xers compared to Boomers, see work as less central, value leisure more, and are more
inclined toward work-life balance. Research conducted by the Center for Creative

Copyright © 2017 Pearson Canada Inc.

4-2 Johns/Saks, Organizational Behaviour, Tenth Edition

Leadership concluded that all work generations share the same values but express them
differently.
Any generational differences in work values or in the way values are expressed is
important because there is much evidence that good “fit” between a person’s values and
those of the organization (person–organization fit) leads to positive work attitudes and
behaviours, including reduced chances of quitting.
Cultural Differences in Values
Cross-cultural differences often contribute to failed business negotiations. As well,
research shows that anywhere from 16 to 40 percent of managers who receive foreign
assignments terminate them early because they perform poorly or do not adjust to the
culture. At the root of many of these problems is a lack of appreciation of basic
differences in work-related values across cultures.

Work Centrality. Work is valued differently across cultures. Value differences across
cultures are reflected in differences in the centrality of work in one’s life. Japan is the
country where work is most central. People for whom work is a central life interest tend
to work more hours. Cross-cultural differences in work centrality can lead to adjustment
problems for foreign employees and managers.

Hofstede’s Study. Geert Hofstede, a social scientist questioned over 116,000 IBM
employees in 40 countries about their work-related values and added another 36 countries
and regions in a subsequent study. His results show differences across cultures in four
basic dimensions of work-related values: power distance, uncertainty avoidance,
masculinity/femininity, and individualism/collectivism. Subsequent work that catered
more to Eastern cultures resulted in a fifth dimension, the long-term/short-term
orientation.

Power distance. Power distance is the extent to which an unequal distribution of power is
accepted by society members. In small power distance cultures, inequality is minimized,
superiors are accessible, and power differences are downplayed. In large power distance
societies, inequality is accepted as natural, superiors are inaccessible, and power
differences are highlighted. Out of 76 countries and regions, Canada and the United
States rank 15 and 16, respectively, falling on the low power distance side of the average,
which is 38.

Uncertainty avoidance. Uncertainty avoidance is the extent to which people are

uncomfortable with uncertain and ambiguous situations. Strong uncertainty avoidance
cultures stress rules and regulations, hard work, conformity, and security. Cultures with
weak uncertainty avoidance are less concerned with rules, conformity, and security, and
hard work is not seen as a virtue. However, risk taking is valued. The United States and
Canada are well below average (i.e., weak uncertainty) ranking 13 and 15, respectively,
out of 76.

Masculinity/femininity. Another cultural value that differs across cultures is known as

masculinity/femininity. More masculine cultures clearly differentiate gender roles,
support the dominance of men, and stress economic performance. More feminine cultures

Copyright © 2017 Pearson Canada Inc.

Chapter 4 Values, Attitudes, and Work Behaviour 4-3

accept fluid gender roles, stress sexual equality, and stress quality of life. Canada ranks
about mid-pack, and the United States is fairly masculine, falling about halfway between
Canada and Japan.

Individualism/collectivism. More individualistic cultures stress independence, individual

initiative and privacy. More collective cultures favour interdependence and loyalty to
family or clan. The United States, Australia, Great Britain, and Canada are among the
most individualistic societies.

Long-term/short-term orientation. Another cultural value that differs across cultures is

known as long-term/short-term orientation. Cultures with a long-term orientation tend to
stress persistence, perseverance, thrift, and close attention to status differences. Cultures
with a short-term orientation stress personal steadiness and stability, face-saving, and
social niceties. The United States and Canada are characterized by a short-term
orientation.

Hofstede has produced a number of interesting “cultural maps” that show how countries
and regions cluster together on pairs of cultural dimensions. Cultures that are more
individualistic tend to downplay power differences, while those that are more
collectivistic tend to accentuate power differences.

Cultural distance refers to the extent to which cultures differ in values. In general, greater
cultural distance impedes communication and makes negotiations, mergers, acquisitions,
and joint ventures more difficult. In addition, expatriates working abroad will generally
find it more difficult to adjust to more distant cultures.

Implications of Cultural Variation

Exporting OB Theories. An important message from the cross-cultural study of values is
that organizational behaviour theories, research, and practices from North America might
not translate well to other societies. For example, North American managers tend to
encourage participation in work decisions by employees which corresponds to the fairly
low degree of power distance. This leadership style might not translate to cultures that
value high power distance.

Importing OB Theories. As well, not all theories and practices that concern
organizational behaviour are designed in North America or even in the West such as
Japanese management techniques. Many of the Japanese-inspired means of organizing
work are team-oriented. Understanding cultural value differences can enable
organizations to successfully import management practices by tailoring the practice to the
home culture’s concerns.

Appreciating Global Customers. An appreciation of cross-cultural differences in values is

essential to understanding the needs and tastes of customers or clients around the world.
Appreciating the values of global customers is also important when the customers enter
your own culture.

Copyright © 2017 Pearson Canada Inc.

4-4 Johns/Saks, Organizational Behaviour, Tenth Edition

Developing Global Employees. Given these differences in cultural values, it is important

for managers to take care when exporting or importing OB theories and appreciating
global customers. An awareness of cross-cultural differences in values can help managers
better appreciate global customers and develop global employees. Companies need to
select, train, and develop employees to have a much better appreciation of differences in
cultural values and the implications of these differences for behaviour in organizations.

The goal here is to foster cultural intelligence (CI), the capability to function and manage
well in culturally diverse environments. CI encompasses knowledge, motivation, and
behaviour that contribute to good cross-cultural functioning, and people with high CI
tend to score high on intercultural adjustment, global leadership, and performance in
intercultural settings.

What Are Attitudes?

An attitude is a fairly stable evaluative tendency to respond consistently to some specific

object, situation, person, or category of people. Attitudes are tendencies to respond to the
target of the attitude and often influence our behaviour toward some object, situation,
person, or group.

Attitude  Behaviour

However, attitudes are not always consistent with behaviour. Behaviour is most likely to
correspond to attitudes when people have direct experience with the target of the attitude
and when the attitude is held confidently.

Where do attitudes come from? Attitudes are a function of what we think and what we
feel. They are the product of a related belief and value.

Belief + Value  Attitude  Behaviour

What Is Job Satisfaction?

Job satisfaction refers to a collection of attitudes that workers have about their jobs.
There are two aspects to job satisfaction. Facet satisfaction is an employee’s satisfaction
with various facets of the job. Examples of job facets are the work itself, compensation,
promotions, career opportunities, recognition, benefits, working conditions, supervision,
co-workers, and organizational policy. Overall satisfaction is a summary indicator of an
employee’s attitude toward his or her job that cuts across the various facets.

How is job satisfaction measured? A popular measure of job satisfaction is the Job
Descriptive Index (JDI). Employees are asked to respond “yes,” “no,” or “?” (can’t
decide) to particular words or phrases which describe five facets of satisfaction (people,
pay, supervision, promotions, and the work itself). There is also a scale that provides an
overall measure of satisfaction. Another measure of satisfaction is the Minnesota
Satisfaction Questionnaire (MSQ) in which respondents are asked to indicate how happy

Copyright © 2017 Pearson Canada Inc.

Chapter 4 Values, Attitudes, and Work Behaviour 4-5

they are with various aspects of their job on a scale ranging from “very satisfied” to “very
dissatisfied.”

What Determines Job Satisfaction?

When workers complete the JDI or the MSQ we often find differences in the average
scores across jobs and by individuals performing the same job in a given organization.
For example, two nurses who work side by side might indicate radically different
satisfaction in response to the MSQ item “The chance to do things for other people”.
How does this happen?

Discrepancy
Discrepancy theory is a theory of job satisfaction that asserts that satisfaction is a
function of the discrepancy between the job outcomes wanted and the outcomes that they
perceive they obtain. Employees who perceive that they have more of their job-related
desires met will report more overall job satisfaction.

Fairness
Fairness is another strong determinant of job satisfaction. There are three basic kinds of
fairness. Distributive fairness has to do with the outcomes we receive, procedural fairness
concerns the process that led to those outcomes, and interactional fairness concerns how
these matters were communicated to us.

Distributive Fairness. Distributive fairness occurs when people receive the outcomes
they think they deserve from their jobs, that is, it involves the ultimate distribution of
work rewards and resources. The best known theory of distributive fairness is equity
theory. Equity theory is a theory of job satisfaction that stems from a comparison of the
inputs one invests in a job and the outcomes one receives in comparison with the inputs
and outcomes of another person or group. Equity will be perceived to exist when one’s
outcome/input ratio is equal to a comparison other.

Inputs refer to anything that people give up, offer, or trade to their organization in
exchange for outcomes. Examples include education, training, seniority, hard work, and
high quality work. Outcomes are factors that an organization distributes to employees in
exchange for their inputs. Examples include pay, career opportunities, supervision, and
the nature of the work. The “other” in the ratio might be a co-worker performing the
same job, a number of co-workers, or even one’s conception of all the individuals in
one’s occupation.

Equity theory has implications for job satisfaction. First, inequity is a dissatisfying state
especially when one is on the “short end of the stick” and so it is likely to prompt
dissatisfaction. Second, equity considerations also can have an indirect effect on job
satisfaction because they influence what people want from their jobs. For example, if an
individual invests greater inputs than others, he or she expects greater outcomes. Thus,
the equitable distribution of work outcomes contributes to job satisfaction by providing
for feelings of distributive fairness. The equity concept suggests that outcomes should be
tied to individual contributions or inputs. However, this corresponds with the

Copyright © 2017 Pearson Canada Inc.

4-6 Johns/Saks, Organizational Behaviour, Tenth Edition

individualistic North American culture. In other cultures, allocating outcomes according

to equality and needs might provide for distributive fairness.

Procedural Fairness. In addition to distributive fairness, procedural fairness can also

contribute to job satisfaction. Procedural fairness occurs when the process used to
determine work outcomes is seen as reasonable. Rather than involving the actual
distribution of resources and rewards, it is concerned with how these outcomes are
decided and allocated. Procedural fairness is particularly relevant to outcomes such as
performance evaluations, pay raises, promotions, layoffs, and work assignments.
Perceptions of procedural fairness are likely when consistent procedures are used over
time and across people, accurate information is used and bias is absent, two-way
communication occurs, and appeals are welcome. Procedural fairness is especially likely
to provoke dissatisfaction when people also see distributive fairness as being low.

Interactional Fairness. Interactional fairness (often called interactional justice) occurs

when people feel that they have received respectful and informative communication
about some outcome. Thus, it extends beyond the actual procedures used to the
interpersonal treatment received when learning about the outcome. Interactional fairness
is important because it is possible for fair outcomes or procedures to be perceived as
unfair when they are inadequately or uncaringly explained. People who experience
procedural unfairness tend to be dissatisfied with the “system.” People who experience
interactional unfairness are more likely to be dissatisfied with their boss. Procedural and
interactional fairness can to some extent offset the negative effects of distributive
unfairness.

Disposition
According to the dispositional view of job satisfaction, some people are predisposed by
virtue of their personalities to be more or less satisfied despite changes in discrepancy or
fairness. Researchers have found that some personality characteristics originating in
genetics or early learning contribute to adult satisfaction. People who are extraverted and
conscientious tend to be more satisfied with their jobs, while those high in neuroticism
are less satisfied. Also people, who are high in self-esteem and internal locus of control
are more satisfied. In general, people who are more optimistic and proactive report higher
job satisfaction.

Mood and Emotion

Affect is also a determinant of job satisfaction. Affect is a broad label for feelings. These
feelings include emotions, which are intense, often short-lived, and caused by a particular
event such as a bad performance appraisal. Common emotions include joy, pride, anger,
fear, and sadness. Affect also refers to moods, which are less intense, longer-lived, and
more diffuse feelings.

Affective Events Theory explains how emotions and moods affect job satisfaction. The
theory reminds us that jobs consist of a series of events and happenings that have the
potential to provoke emotions or to influence moods, depending on how we appraise

Copyright © 2017 Pearson Canada Inc.

Chapter 4 Values, Attitudes, and Work Behaviour 4-7

these events and happenings. For example, perceived unfairness can affect job
satisfaction via emotion.

Mood and emotion can also influence job satisfaction through emotional contagion, the
tendency for moods and emotions to spread between people or throughout a group.
People’s moods and emotions tend to converge with interaction. Mood and emotion can
also influence job satisfaction through the need for emotional regulation. This is the
requirement for people to conform to certain “display rules” in their job behaviour in
spite of their true mood or emotions. This is also known as “emotional labour.” It can
involve being perky and upbeat, whether one feels that way or not, thus exaggerating
positive emotions, or remaining calm and civil even when hassled or insulted, thus
suppressing negative emotions. Service roles such as waiter, bank teller, and flight
attendant are especially laden with display rules. There is growing evidence that the
frequent need to suppress negative emotions takes a toll on job satisfaction and increases
stress. The requirement to express positive emotions, especially when you really are
feeling positive, boosts job satisfaction and reduces stress.

There is also some evidence that those in occupations with high cognitive demands tend
to be paid more when the jobs are also high in emotional labour. On the other hand,
occupations with low cognitive demands entail a wage penalty when emotional labour is
higher.

In summary, job satisfaction is a function of certain dispositional factors, discrepancy

between the job outcomes wanted and received, and mood and emotion. People
experience greater job satisfaction when they meet or exceed the job outcomes they want,
perceive the job outcomes they receive as equitable compared with those others receive,
and believe that fair procedures determine job outcomes

Some Key Contributors to Job Satisfaction

Although what determines job satisfaction is a highly personal experience, certain job
facets contribute to job satisfaction for most workers. These include mentally challenging
work, adequate compensation, career opportunities, and colleagues who are friendly and
helpful.

Mentally Challenging Work. This is work that tests employees’ skills and abilities and
allows them to set their own working pace. Employees generally perceive such work as
personally involving and important. However, some employees prefer repetitive,
unchallenging work that makes few demands on them.

Adequate Compensation. Pay and job satisfaction are positively related although not
everyone is equally desirous of money. Some people are willing to accept less
responsibility or fewer working hours for lower pay.

Career Opportunities. The availability of career opportunities contributes to job

satisfaction. The opportunity for promotion is an important contributor to job satisfaction

Copyright © 2017 Pearson Canada Inc.

4-8 Johns/Saks, Organizational Behaviour, Tenth Edition

because promotions contain a number of signals about a person’s self-worth. Some of

these signals are material while others are of a social nature.

People. Friendly, considerate, good-natured superiors and co-workers contribute to job

satisfaction, especially via positive moods and emotions. We also tend to be satisfied in
the presence of people who help us attain job outcomes that we value. The friendliness of
interpersonal relationships is most important in lower-level jobs. As jobs become more
complex, pay is tied to performance, or promotion opportunities increase, the ability of
others to help us do our work well contributes more to job satisfaction.

Consequences of Job Satisfaction

Many organizations have maintained a competitive advantage by paying particular

attention to employee satisfaction which has consequences for employees and
organizations.

Absence from Work

Absenteeism costs billions of dollars each year. Research shows that less-satisfied
employees are more likely to be absent. Satisfaction with the content of the work is the
best predictor of absenteeism. However, the absence-satisfaction connection is not very
strong. Several factors constrain the ability of many people to convert their like or dislike
of work into corresponding attendance patterns:
- Some absence is simply unavoidable and some happy workers will occasionally
be absent.
- Some organizations have attendance control policies that can influence absence
more than satisfaction does.
- On many jobs, it might be unclear to employees how much absenteeism is
reasonable or sensible. As a result, workers may look to the behaviour of their
peers for a norm to guide their behaviour.

Turnover
Turnover refers to resignation from an organization and can be very expensive. There is a
moderately strong connection between job satisfaction and turnover. Less-satisfied
workers are more likely to quit. However, the relationship is far from perfect. Exhibit 4.8
in the text shows a model of employee turnover. The model shows that job satisfaction as
well as commitment to the organization and various “shocks” can contribute to intentions
to leave. Such intentions are very good predictors of turnover. On the other hand, reduced
satisfaction or commitment can also stimulate a more deliberate evaluation of the utility
of quitting and a careful job search and evaluation of job alternatives.

There are a number of reasons why satisfied people sometimes quit their jobs or
dissatisfied people stay:

- Certain “shocks,” such as a marital break-up, the birth of a child, or an unsolicited

job offer in an attractive location, might stimulate turnover despite satisfaction
with the current job.

Copyright © 2017 Pearson Canada Inc.

Chapter 4 Values, Attitudes, and Work Behaviour 4-9

- An employee’s dissatisfaction with his or her specific job might be offset by a

strong commitment to the overall values and mission of the organization.
- An employee might be so embedded in the community that he or she is willing to
endure a dissatisfying job rather than move.
- A weak job market might result in limited employment alternatives.

Despite these exceptions, a decrease in job satisfaction often precedes turnover, and those
who quit experience a boost in satisfaction on their new job. Some of this boost might be
due to a “honeymoon effect” in which the bad facets of the old job are gone, the good
facets of the new job are apparent, and the bad facets of the new job are not yet known.
Over time, as these bad facets are recognized, a “hangover effect” can occur in which
overall satisfaction with the new job decreases.

Performance
Research has confirmed what folk wisdom and business magazines have advocated for
many years – job satisfaction is associated with enhanced performance. However, the
connection between satisfaction and performance is complicated, because many factors
influence motivation and performance besides job satisfaction. The most important facet
has to do with the content of the work itself. Interesting, challenging jobs are most likely
to stimulate high performance. Although job satisfaction contributes to performance,
performance could also contribute to job satisfaction. When good performance is
followed by rewards, employees are more likely to be satisfied. However, since many
organizations do not reward good performance, contemporary research indicates that
satisfaction is more likely to affect performance, rather than the reverse.

Organizational Citizenship Behaviour

Organizational citizenship behaviour (OCB) is voluntary, informal behaviour that
contributes to organizational effectiveness. Job satisfaction contributes greatly to the
occurrence of OCB. The defining characteristics of OCB are as follows:

- The behaviour is voluntary.

- The behaviour is spontaneous.
- The behaviour contributes to organizational effectiveness.
- The behaviour is unlikely to be explicitly picked up and rewarded by the
performance evaluation system since it is not part of the job description.

OCB takes various forms including helping behaviour, conscientiousness to the details of
work, being a good sport, and courtesy and cooperation. Fairness is important for
understanding how job satisfaction contributes to OCB. Although distributive fairness
(especially in terms of pay) is important, procedural and interactional fairness from a
supportive manager seem especially critical. OCB is also influenced by employees’ mood
at work. People in a pleasant, relaxed, optimistic mood are more likely to provide special
assistance to others. OCB contributes to organizational productivity and efficiency and to
reduced turnover.

Copyright © 2017 Pearson Canada Inc.

4-10 Johns/Saks, Organizational Behaviour, Tenth Edition

Research shows that there is sometimes a progression of withdrawal in response to job

dissatisfaction (and to reduced commitment, discussed below). People withdraw their
attention or work effort in an attempt to compensate for dissatisfaction, beginning with
more subtle behaviours and progressing to more extreme, until some equilibrium is
struck. A reduction of OCB is often the first withdrawal response and it may be followed,
in turn, by coming to work late, then absenteeism, and ultimately turnover.

Customer Satisfaction and Profit

A growing body of evidence has established that employee job satisfaction is translated
into customer or client satisfaction and organizational profitability. Organizations with
higher average levels of employee satisfaction are more effective. The reasons for this
include reduced absenteeism and turnover which contribute to the seamless delivery of
service, as well as OCBs that stimulate good teamwork. As well, good mood among
employees can be contagious for customers.

What Is Organizational Commitment?

Organizational commitment is an attitude that reflects the strength of the linkage between
an employee and an organization. There are three types of organizational commitment:
• Affective commitment is commitment based on identification and involvement with an
organization.
• Continuance commitment is commitment based on the costs that would be incurred in
leaving an organization.
• Normative commitment is commitment based on ideology or a feeling of obligation to
an organization.

Key Contributors to Organizational Commitment

The best predictor of affective commitment is interesting, satisfying work of the type
found in enriched jobs. Role clarity and and having one’s expectations met after being
hired also contribute to affective commitment. Continuance commitment increases with
the length of time an employee spends in an organization and when leaving an
organization will result in personal sacrifice or the perception that good alternative
employment is lacking. Building up “side bets” or being integrated into the community
where the firm is located can lock employees into organizations even though they would
rather go elsewhere. Normative commitment can be fostered by benefits that build a
sense of obligation or loyalty to the organization such as tuition reimbursements. Strong
identification with an organization’s product or service can also foster normative
commitment as well as certain socialization practices.

Consequences of Organizational Commitment

There are a number of consequences of commitment. There is evidence that all forms of
commitment reduce turnover intentions and actual turnover. Affective commitment is
positively related to performance, but continuance commitment is negatively related to
performance. An especially bad combination for both the employee and the organization
is high continuance commitment coupled with low affective commitment. A downside to
organizational commitment is that very high levels of commitment can also cause

Copyright © 2017 Pearson Canada Inc.

Chapter 4 Values, Attitudes, and Work Behaviour 4-11

conflicts between work family life and work-life. High levels of commitment have also
been implicated in unethical and illegal behaviour. High levels of commitment to a
particular form or style of organization can cause a lack of innovation and lead to
resistance when a change in the culture is necessary.

Changes in the Workplace and Employee Commitment

John Meyer, Natalie Allen, and Laryssa Topolnytsky have suggested that changes in the
workplace can impact employee commitment in three main areas:

Changes in the nature of employees’ commitment to the organization. Changes in the

workplace can have an impact on all three types of organizational commitment causing
them to increase or decrease. Maintaining high levels of affective commitment will be
particularly challenging. Changes that are detrimental to employees’ well-being are most
likely to damage affective commitment.

Changes in the focus of employees’ commitment. The focus of employee commitment

might change and can include entities within the organization as well as entities outside
of the organization such as one’s occupation, career, and union. As organizations increase
in size, employees are likely to shift their commitment to smaller organizational units.
Changes that threaten employees’ future in the organization might also result in a shift in
commitment to entities outside the organization.

The multiplicity of employer-employee relationships within organizations.

Organizations need to be flexible enough to shrink or expand their workforce as they
attempt to cope and adapt to rapid change. They also need a workforce that is flexible
enough to get any job done. This creates a conflict as employees without job security may
not be as flexible as the organization would like or have strong affective commitment.
One solution is for the organization to have a group of core employees who perform key
operations and whose affective commitment is fostered. Other employee groups might
consist of contractual arrangements or individuals hired on a temporary basis who do not
perform core tasks and whose commitment to the organization is not as important.

MINI-LECTURE: BEHAVIOURAL COMMITMENT

The text presents an attitudinal view of organizational commitment. However, it is

possible to take a more behavioural view, in the spirit of changing behaviour to change
attitudes. The question arises: Is it possible to help people develop attitudinal
commitment to an organization or some course of action by making them act committed?

Begin the lecture with the attention-getter “How to make anybody committed to
anything.” Gerald Salancik has laid out the criteria for getting behavioural commitment,
which should in turn translate into psychological commitment. These include:

1. The behaviour should be voluntary. When people choose to engage in some

behaviour, they will be more committed to it.

Copyright © 2017 Pearson Canada Inc.

4-12 Johns/Saks, Organizational Behaviour, Tenth Edition

2. The behaviour should be irrevocable, or nearly so. Behaviours that are hard or
impossible to reverse foster commitment.
3. The behaviour should be public. When others have seen us engage in irrevocable
action voluntarily, we will be especially prone to justify our actions with
psychological commitment.

Have the students think up examples of commitment that rely on these processes. Some
examples of religious conversion use this process. Also, gangs are good at fostering
behavioural commitment. Joining the volunteer armed forces often provokes a high
degree of commitment to what is initially a pretty unpleasant experience by virtue of this
process. People who experience this process in deciding to go to university should be
more committed than those who succumb to parental pressure or make the decision in
secret.

Have the students think about how commitment to a new R&D project team could be
bolstered using behavioural commitment.

Cathy Cline and Lawrence Peters found that newly hired clerical employees who
perceived their acceptance of the job to be more volitional, irrevocable, and public were
more likely to remain on the job longer and exhibit less turnover.

Sources: Salancik, G. (1977) Commitment and the control of organizational behavior and
belief. In B. M. Staw & Salancik (Eds.), New Directions in Organizational Behavior
Chicago: St. Clair: Cline, C.J., & Peters, L.H. (1991) Behavioral commitment to new
employees. Academy of Management Journal, 34, 194-204

MINI-LECTURE: THE BENEFITS OF TURNOVER

While most managers are aware of the costs associated with turnover, they are less likely
to consider its potential benefits. This may be because these benefits are very difficult to
quantify. Nevertheless, they should be considered in any complete analysis of turnover.

Professor Barry Staw of the University of California at Berkeley has offered a wry
observation: In the United States, some of the most notoriously unproductive
organizations (the railroads, postal service, and federal government) are staffed with
employees with a very high average tenure. This suggests that organizational
effectiveness can be threatened by too little turnover. Staw argues that there may be a
characteristic relationship between tenure and performance for various jobs. In those
involving high physical demands, chronic stress, or rapid obsolescence of knowledge,
performance may peak near mid-career and then gradually decline. In jobs that provoke
burnout the decline may occur especially early and rapidly. Counselling, retraining, and
alternative career paths may solve some of these problems. When these are not feasible,
turnover may benefit both the organization and the person who leaves.

Staw also points out that turnover may lead to a reduction of entrenched conflict.
Especially in new or growing organizations, power factions may develop as the

Copyright © 2017 Pearson Canada Inc.

Chapter 4 Values, Attitudes, and Work Behaviour 4-13

organization hammers out its identity. At some point, this process must be resolved so
that stability can be reached, and it may be accomplished by the wholesale resignation of
one faction or the other.

Turnover can also be useful when management desires a work force reduction. Natural
attrition through turnover may be preferable to lay-offs or terminations for maintaining
community relations and the organization’s future recruiting image.

A final potential benefit of turnover depends on whether an organization tends to promote

from within or go outside to fill vacant positions. Except under expansion, a promotion-
from-within policy requires regular turnover to ensure that higher level openings are
available. Without this, employees may have their needs for growth and achievement
frustrated. When firms go outside to fill vacancies, turnover offers the possibility of
introducing “new blood” into the organization (especially with a modified recruiting
strategy). Most rules, regulations, and policies foster conformity and homogeneity among
organizational members. Thus, the new perspectives provided by outside recruits may be
vital to organizational effectiveness.

The potential benefits of turnover suggest that it is a phenomenon to be managed rather

than necessarily reduced.

Source: Staw, B.M. (1980). The consequences of turnover. Journal of Occupational

Behaviour, 1, 253-273.

SAMPLE ANSWERS TO DISCUSSION QUESTIONS

1. Explain how these people might have to regulate their emotions when doing their
jobs: hair salon owner; bill collector; police officer; teacher. How will this
regulation of emotion affect job satisfaction?
For a salon owner, customer service would certainly be a priority and remaining cool
when dealing with unhappy clients would necessitate emotional regulation, but to the
extent that an owner of a salon can target a certain segment of the market and style, he or
she would be quite free to actually set the emotional tone for the business. Teachers
would also have leeway in setting the emotional tone for the classroom, but would also be
mindful of creating a positive learning environment by regulating moods and retaining
control in situations of rowdiness. A class of particularly difficult students would require
high doses of emotional regulation and take a toll on job satisfaction. Bill collectors
would need to regulate emotions carefully as they often deal with people who are
embarrassed, evasive, and sometimes aggressive. A calm, low-key but serious demeanour
would be best; an overly aggressive tone could be dangerous and an overly cheerful tone
would be inappropriate. Being the constant bearer of bad news and dealing with upset
people could take an emotional toll and hurt job satisfaction. Police officers would need
to regulate emotions in the face of emotional, and potentially shocking events. The need
to remain composed and in control when confronted with disturbing events or abusive
behaviour is a requirement for all police officers. However, it is reasonable to expect that

Copyright © 2017 Pearson Canada Inc.

4-14 Johns/Saks, Organizational Behaviour, Tenth Edition

officers subjected on a regular basis to very emotional events could see job satisfaction
quickly dissipate if not counter-balanced with helping episodes and successes.

2. Using the model of the turnover process in Exhibit 4-8, explain why a very
dissatisfied employee might not quit his or her job.
A dissatisfied employee might not quit his or her job for a number of reasons. The
dissatisfaction might be offset by a strong commitment to the overall values and mission
of the organization; an employee might be so embedded in the community that he or she
is willing to endure a dissatisfied job rather than move; or a weak job market might result
in limited employment alternatives.

3. Use equity theory to explain why a dentist who earns $100,000 a year might
experience more job dissatisfaction than a factory worker who earns $40,000.
The essential issue here is comparison persons. It is unlikely that dentists choose factory
workers as comparison persons (or vice versa) in evaluating their job inputs and
outcomes. Perhaps the dentist is dissatisfied because she believes that other dentists or
professionals earn much more than she does in exchange for equal inputs. Similarly, she
may see herself as investing additional inputs (time, effort, and skill) for equivalent
outcomes. On the other hand, the factory worker may see himself as fairly paid in
comparison with other factory workers in the community, given his job inputs.

4. Mexico has a fairly high power distance culture, while the United States and Canada
have lower power distance cultures. Discuss how effective management techniques
might vary between Mexico and its neighbours to the north.
In a culture that has a large power distance with low individualism, jobs can be spelled
out in very precise terms and strong leaders must be chosen so that the group can function
effectively. In the U.S. and Canada, an approach that provides greater autonomy and
decision-making power to individuals and self-managed groups would be more effective.

5. Give an example of an employee who is experiencing distributive fairness but not

procedural fairness. Give an example of an employee who is experiencing procedural
fairness but not distributive fairness.
Jack is the best performer in the department, and he is the most highly paid. However,
there is no provision for formal performance review and no mechanism to appeal pay
decisions. Mary is paid according to her performance and works under a clear, unbiased
performance review system with appeal mechanisms. However, her pay is $5,000 under
market value.

ADDITIONAL DISCUSSION QUESTIONS AND ANSWERS

1. What are some of the conditions under which a person’s attitudes might not predict
his or her work behaviour?
An attitude is a relatively stable evaluative tendency to respond consistently toward
school or work. A common attitude is a sense of satisfaction or dissatisfaction with
school or work. Behaviours are inconsistent with attitudes due to social pressure or

Copyright © 2017 Pearson Canada Inc.

Chapter 4 Values, Attitudes, and Work Behaviour 4-15

circumstantial constraints. A worker who really loves her job may say she doesn’t just to
please dissatisfied peers. A worker who hates his job may not resign because few
alternatives are available in a poor economy. Also keep in mind that behaviour is most
likely to correspond to attitudes when people have direct experience with the target of the
attitude and when the attitude is held confidently.

2. What is the difference between procedural and interactional fairness? Give an

example of each.
Procedural fairness refers to the process used to allocate work outcomes and the extent to
which it is seen as reasonable. It is concerned with how outcomes are decided and
allocated. When an employee is not provided with adequate reasons for decisions, or
when inconsistent procedures are used over time and across people, procedural fairness
will be low. Other things that will influence it include the accuracy of information used,
two-way communication, and appeals are welcome. Interactional fairness refers to how
decision outcomes have been communicated. It occurs when people feel that they have
received respectful and informative communication about some outcome and involves the
interpersonal treatment received when learning about the outcome. When a manager tells
an employee that he/she did not receive a promotion they were expecting in an uncaring
and unsympathetic manner it is likely to result in lower interactional fairness.

3. Explain why employees who are very satisfied with their jobs might not be better
performers than those who are less satisfied.
A worker might be more satisfied because of rewarding social relationships that actually
interfere with high performance. Similarly, a dissatisfied worker might perform fairly
well due to close supervision and organizational controls such as production quotas. In
general, satisfaction is more likely to be associated with performance when work rewards
are made contingent on performance. In many organizations this contingency does not
exist.

4. Describe some job aspects that might contribute to job satisfaction for a person in a
more collective culture. Do the same for a person in a more individualistic culture.
In a more collective culture, the following factors might contribute to job satisfaction:
Team work; group-based rewards; the organization giving hiring preference to one’s own
family members or clan; factors that promote and reward organizational loyalty. In a
more individualistic culture, the following characteristics might contribute to job
satisfaction: Rewards based on individual performance; the opportunity to work
independently; status symbols accorded to individuals.

EXTRA DISCUSSION QUESTIONS

1. What is the relationship among attitudes, beliefs, and values?

2. Why is the concept of job satisfaction and organizational commitment important to
organizations?
3. Use equity and discrepancy to explain what causes job satisfaction.
4. Describe how emotions and moods influence job satisfaction.

Copyright © 2017 Pearson Canada Inc.

4-16 Johns/Saks, Organizational Behaviour, Tenth Edition

5. List the various tips you would give a manager who wishes to change the attitudes of
his or her employees.
6. What are the factors that contribute to feelings of procedural fairness?
7. Distinguish between affective, continuance, and normative commitment? Can
organizations maintain high levels of commitment given the changes in the
workplace?
8. What are some value differences across cultures and what are their implications for
organizational behaviour?
9. What are the different generations in the workplace and what are some value
differences between them? What are the implications of these value differences for
organizations?
10. Describe the progression of withdrawal that is associated with job dissatisfaction and
what are the implications for managers?

SAMPLE ANSWERS TO INTEGRATIVE DISCUSSION QUESTIONS

1. What role do perceptions play in the determination of job satisfaction? Refer to the
components of perception in Chapter 3 and describe how perception plays a role in
the determination of job satisfaction according to discrepancy theory, equity theory,
and dispositions. How can perceptions be changed to increase job satisfaction?
Perceptions play a key role in the determination of job satisfaction. Discrepancy theory
involves people’s perceptions of what they obtain from their job and what they want.
Equity theory is a function of one’s perceived inputs and outcomes and the perceived
inputs and outcomes of comparison others. Dispositions influence how people perceive
their job and whether they are satisfied or not. Looking at the components of the
perceptual system, the perceiver’s experience, motivational state, and emotional state is
likely to influence his or her perception of what they obtain as well as their inputs and
outcomes. As well, to the extent that one’s emotional state influences how they perceive
things, then a positive or negative emotional state can influence one’s degree of job
satisfaction. Perception is also a factor to the extent that any of the targets are ambiguous.
Ambiguous targets could be one’s own inputs and outcomes as well as those of
comparison others.

The nature of the situation could also influence how one perceives his or her job and
therefore play a role in job satisfaction. Changing perceptions to increase job satisfaction
could involve making the target less ambiguous and creating pleasant work situations.
For example, if workers have a clear idea of what their inputs and outcomes are as well as
those of relevant comparison others, they might be more satisfied provided that such
information indicates an equitable situation.

2. Does personality influence values and job attitudes? Discuss how the Big Five
personality dimensions, locus of control, self-monitoring, self-esteem, and positive
and negative affectivity, might influence occupational choice, job satisfaction, and
organizational commitment (affective, continuance, and normative). If personality

Copyright © 2017 Pearson Canada Inc.

Chapter 4 Values, Attitudes, and Work Behaviour 4-17

influences job satisfaction and organizational commitment, how can organizations

foster high levels of these attitudes?
There is fairly good evidence that personality does influence people’s job attitudes.
Personality also influences occupational choice. For example, research on self-esteem has
found that individuals with high self-esteem are more likely to choose occupations that
fulfill their needs. They are also likely to have higher job satisfaction than individuals
with low self-esteem. Also, as noted in Chapter 2, the Big Five dimensions are related to
job satisfaction and career success. All of the Big Five dimensions except for openness to
experience are positively related to job satisfaction. As well, people who are high on
positive affectivity report higher job satisfaction while those high on negative affectivity
report lower job satisfaction. In terms of occupational choice, high extraversion has been
found to be important for managers and salespeople. High self-monitors have been found
to prefer occupations that require role-playing such as sales, law, public relations, and
politics and to be less committed to their organization. People with an internal locus of
control tend to be more satisfied with their jobs, more committed to their organization,
and achieve greater career success in terms of pay and position. Ultimately, the key to
fostering high levels of job satisfaction and commitment is to ensure a good match
between individual personality and jobs. Thus, person-job fit is important in terms of
occupational choice and job attitudes.

SAMPLE ANSWER TO ON-THE-JOB CHALLENGE QUESTION: MR.

WINSTON

Use the material in the chapter to speculate on various reasons for Mr. Winston’s
awesome attendance record. What accounts for the great media interest in Mr. Winston?

Mr. Winston appears to have had a set of work values that made work a central part of his
life. There was no indication that he was working so long and so diligently simply to deal
with financial need. Rather, he was probably experiencing job satisfaction due to the
work itself. It is extremely interesting that Mr. Winston appeared to exhibit
organizational commitment in spite of the fact that he experienced unfairness (probably
distributive and procedural) due to racial bias in his earlier years. The terminal where Mr.
Winston worked was eventually named for him, and this might have offset his views
about his earlier privations. This amazing attendance record is an extreme example of
OCB, and it is unlikely that he held a grudge toward his employer. His attendance record
is all the more amazing when it is realized that the average North American misses 4-7
days of work a year, depending on occupation. This extreme example of “outlier
attendance,” coupled with his violation of age stereotypes, doubtless heightened media
attention.

Copyright © 2017 Pearson Canada Inc.

4-18 Johns/Saks, Organizational Behaviour, Tenth Edition

TEACHING NOTES FOR ATTITUDES TOWARD ABSENSTEEISM FROM

WORK EXPERIENTIAL EXERCISE

This exercise can be used to demonstrate how people have different attitudes towards
absenteeism and that there are different reasons for absenteeism besides job
dissatisfaction. Students can obtain their score by adding up their responses to the seven
scenarios and divide by 7. Lower scores represent less favourable attitudes toward
absenteeism. Helena Addae, who developed the scenarios, administered them to over
1500 employees in nine countries. The average rating across the 7 scenarios was 3.09.
The average ratings for each scenario were: S1=2.39; S2=2.88; S3=3.96; S4=3.52;
S5=3.12; S6=3.03; S7=2.70.

With respect to the questions in the text:

1. Students should calculate their total score which indicates their personal attitude
towards absenteeism.
2. Students should discuss their ratings for each scenario in groups and compare their
responses. On what scenarios was their agreement or disagreement? Why do students
disagree on some of the scenarios? Students should also compare their average scores
and try to understand why there are differences among group members.
3. Each group should decide which scenario is most legitimate and which is least
legitimate. They should then determine what distinguishes these two scenarios. In
other words, what is it that makes one the most legitimate and the other one the least
legitimate? They can then compare their choices with the norms listed at the end of
the exercise.
4. Students should think about how they would react as a manager to each scenario.
Would they react differently to the most and least legitimate scenario and why? They
should also consider what they would do in the case of each scenario. It is interesting
to see if they would do different things depending on the scenario or would some
students do the same thing regardless of the scenario and degree of legitimacy. After
all, absenteeism is absenteeism or does the reason for it matter?

Some issues to discuss with the class include:

1. What are the reasons for absenteeism in the seven scenarios?

2. What makes absenteeism legitimate versus illegitimate?
3. What do the scenarios tell us about the reasons for absenteeism and the effect of job
satisfaction? To what extent is job satisfaction part of the reason for absenteeism in
each of the scenarios?
4. Should managers react to all absenteeism in the same way or does the reason and
legitimacy matter?
5. Ask students to relate the material in Chapter 3 on attributions to the scenarios. Do
the scenarios differ in terms of whether one will make a dispositional or situational
attribution for the absenteeism? Does this help explain how students responded to the
scenarios? Will this impact how a manager might respond to the absenteeism? What

Copyright © 2017 Pearson Canada Inc.

Chapter 4 Values, Attitudes, and Work Behaviour 4-19

role do attributions play in determining whether the absenteeism in the scenarios was
rated as legitimate or illegitimate?

TEACHING NOTES FOR HOW MUCH DO YOU GET PAID? CASE INCIDENT

1. According to equity theory, how will these incidents influence Joan’s job satisfaction
and behaviour?
Joan is in a classic case of inequity in comparison to new hires and her peers. In terms of
her inputs, they include her many years of experience and outstanding work, winning
awards, and her seven years of tenure in the organization. Her outcomes include a salary
of $75,000 plus benefits. The two new hires only have a degree from a top school of
journalism. However, their outcome is a salary of $80,000. Thus, Joan’s inputs are
greater but her outcomes are lower. In addition, Joan’s two colleagues have similar inputs
but stand to receive greater outputs if they accept their job offers - $150,000 salary plus
$10,000 for every award they receive. Thus, Joan is clearly in a state of inequity and this
is likely to result in job dissatisfaction. This might have a negative effect on her
performance if something is not done to deal with the inequity. She might also lower her
organizational citizenship behaviour in response to a situation that she perceives as
unfair.

2. What should Joan do in response to her situation? What should her organization do?
Joan has a number of options. She could try to live with the situation if she can tolerate
the inequity. She might try to change her equity equation by asking for a raise and
thereby increase her outcomes. If this does not work, she might lower her inputs if this is
possible, but given the satisfaction she gets from the excitement and challenge of her
work, this might be unlikely. Finally, she might simply quit and follow her colleagues to
big American networks where she will receive greater outcomes. Her organization should
do something to deal with the inequity in their organization. To begin with, they should
increase Joan’s outcomes relative to the new hires as this clearly creates a situation of
internal inequity. Second, while they might not be able to match what the big networks
are offering, they might be able to provide additional outcomes such as compensation for
winning awards. Ultimately, if the organization does not want to lose experienced
reporters like Joan, they must do something to deal with the inequity.

Copyright © 2017 Pearson Canada Inc.

4-20 Johns/Saks, Organizational Behaviour, Tenth Edition

TEACHING NOTES FOR MICHAEL SIMPSON CASE STUDY

1. Use discrepancy theory concepts to explain Michael Simpson's feelings.

Basically, discrepancy theory suggests that job satisfaction is a function of the

discrepancy between the job outcomes one wants to receive and the job outcomes that are
perceived to be actually received. Desired job outcomes are a product of one's values,
and perceived outcomes received represent beliefs about one's current employment
situation. In general, more discrepancy results in less job satisfaction, at least as long as
outcomes received are less than those wanted. Fairness considerations (mainly
distributive fairness or equity) influence the level of desired job outcomes. Also, since
most people don't get all the work outcomes they want, fairness considerations (both
distributive and procedural) affect the extent to which a given level of discrepancy gets
translated into dissatisfaction. The job outcomes that Michael Simpson seems most
interested in include career progression, interesting work, and salary. It doesn't seem that
there is any discrepancy regarding the career progression facet -- Mike has progressed
quickly for a young MBA. Also, he finds the work interesting. On the other hand, the
salary facet reveals a strong discrepancy between what Mike wants and what he is
getting. One of the most interesting aspects of this case is the fact that Mike has been
promoted and he himself describes his corresponding raise as a good one! Yet he is still
dissatisfied. This is because issues of fairness have had an impact on the job outcomes he
wants and sensitized him to the existing outcome discrepancy. To exaggerate the point
slightly, Mike doesn't begrudge what he is getting, he just wants more.

2. Use equity theory to explain Michael's feelings. Provide details about inputs,
outcomes, and likely comparison people.

Equity considerations are a key component of Michael's dissatisfaction, especially the

choice of comparison people. From his point of view, relevant inputs include his MBA
from a leading business school, his level of responsibility, his two years experience
within the firm, the fact that he is currently uniquely qualified to do certain jobs, and his
(recognized) excellent performance to date. As noted above, relevant outcomes seem to
be salary, career progression, and interesting work. Several comparison people have
stimulated Mike's feelings of inequity:

a.The generalized market for his specialty, as noted by a corporate headhunter.

b.New MBAs in general, as noted by his wife Diane.

c.Recent recruits to his own firm, Walt Graham and Rich Watson.

d.Martha Lohman, who left his firm and returned.

Mike is especially galled by the latter inside-firm comparisons. Walt and Rich, who have
as much total experience as Mike, but only one year with Avery McNeil Co., will now
make $2,000 more than Mike! And Martha, who has less responsibility than Mike was
rewarded for leaving the firm by being given a higher salary upon her return! A critical

Copyright © 2017 Pearson Canada Inc.

Chapter 4 Values, Attitudes, and Work Behaviour 4-21

point that students should recognize here is that Mike says he would have felt he was
getting a reasonable raise until he was exposed to this information. That's the power of
social information and equity motives.

3. Comment on Mike's likely perceptions about procedural fairness at Avery McNeil

and Co.

Mike probably doesn't begrudge the impact of market forces on salaries. Rather, Avery
McNeil and Co. obviously has a rather secretive salary determination system that is not
constructed in a way that enables employees to know how much a promotion will be
worth. Key components of procedural fairness include the provision of reasons for
decisions, the use of consistent procedures, two-way communication, and the right of
appeal. All of these appear to be missing. Note especially that the boss won't negotiate
salaries after they are okayed by the compensation committee. Mike is probably
sensitized to these procedural problems because of the distributive problem discussed
above.

4. Apply affective events theory to the case. How did the memo affect the mood in
the office? What emotions are at play?

Reading the memo about the proposed salaries was a discrete event that provoked a
strong emotional reaction from Mike. As he notes himself, prior to seeing the memo he
was prepared to be satisfied with his raise based on the amount of his increase. The
memo and comparisons it initiated brought his perceptions of inequity to a whole new
level. The memo led to shock, anger, and frustration, which in turn led to Mike’s
withdrawal intentions to leave the office immediately. The memo also served to prolong
and intensify Mike’s general mood of dissatisfaction with his pay and prompted
procedural fairness considerations and turnover intention discussions with his wife.

5. Use Exhibit 4.8 to analyze the factors that might determine if Mike quits his job at
Avery McNeil.

Mike’s growing dissatisfaction with his pay and the shock of the memo is causing him to
consider leaving Avery McNeil. While these factors are obviously not strong enough to
prompt Mike to impulsively quit, they have initiated a deliberate evaluation of whether he
ought to remain or leave. Although the chance for higher pay is obviously an important
factor, Mike is also considering other factors such as the level of mental challenge
available in other jobs, career progression possibilities, and his relationship with the
people at Avery. By all accounts, these non-pay related factors are all positive at Avery
and Mike may be giving up valued job characteristics if he left. The fact that Martha left
and then quickly returned could also be a signal that the work environment at Avery is
better than elsewhere. Still, the hot job market for M.B.A.s and consultants is also surely
fuelling Mike’s thought processes. Finally, it should be noted that the entire turnover
evaluation process could be greatly affected by Diane’s completion of her M.B.A., which
will add a whole new set of factors, such as her salary and the location of her new job.

Copyright © 2017 Pearson Canada Inc.

4-22 Johns/Saks, Organizational Behaviour, Tenth Edition

6. Speculate on the likely consequences of Mike's dissatisfaction if he does not quit

the firm.

One result could be tension between Mike and experienced consultants who are paid
more. Also, Mike might lower his inputs. This could be accomplished by increased
absenteeism or by suspending his organizational citizenship behaviours and "working to
rule." It is unlikely that Mike will change comparison people or cognitively restructure
the input-outcome equation. Finally, job dissatisfaction can stimulate "voice" as well as
neglect, and Mike might be motivated to seek his boss's help or to form a coalition with
other experienced employees who are feeling inequity.

7. Comment on how Mike’s organizational commitment may be changing.

Work experiences are the primary contributors to affective commitment. Although the
enriched job and career development available through Avery McNeil certainly enhance
affective commitment, perceived unfairness would decrease it. As such, all else being
equal, the perceived unfairness relating to salary and its negative effects on job
satisfaction have surely reduced Mike’s affective commitment. At the same time, it is
clear that Mike’s normative commitment is still strong as he is considering the
investments the organization has made on his behalf and the fact that his departure would
hurt the firm. Continuance commitment could also be a factor as Mike seems reluctant to
give up his manager position that he worked hard to achieve to go to a firm where he
would have to prove himself all over again.

8. What should Mike do now?

Answers will vary from resigning to confronting the boss to starting his own firm.
Students might be asked to list the pros and cons of each alternative. One relatively
costless political tactic might be to call a meeting with his boss before the salaries are
announced and state his expectations in such a way that they can be met without the
company appearing to have changed its compensation decision. Some, however, may
question the ethics of this, since Mike has some inside information about the salary
allocations.

Copyright © 2017 Pearson Canada Inc.