Many employers have a policy stating that all salary information is strictly confidential. Do you agree with these policies? Why or why not?
What will be an ideal response?
According to both equity theory and expectancy theory, if salaries are kept confidential, pay cannot not be used to motivate performance. Equity theory claims that people compare their outcomes/inputs ratio to that of other employees. Salary is a significant outcome and, if kept confidential, people are unable to make accurate comparisons. The only reason for managers to keep salaries secret is to hide inequities. Similarly, expectancy theory states that people need accurate information about salaries to determine if performance is linked to outcomes (instrumentality).
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Jackson & Murphy Enterprises expects the following for 2017
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