Nathan exclaimed, "Janet, I just heard that Veronica makes a salary that is three times greater than mine! But I have a house payment and child care expenses that she does not have!" Janet replied, "Nathan, your financial situation is not at all relevant to what our employer pays you. Your compensation reflects your value to the company. Veronica is the vice president of sales. Do you believe that she contributes three times more than you?" Nathan responded, "At least! We wouldn't have jobs without her! Oh, I see what you mean." Nathan came to understand why Veronica made more than he did because Janet reminded him to think in terms of

A. quality of work life (QWL).
B. intrinsic rewards.
C. the equity theory.
D. hygiene factors.
E. discrimination.


Answer: C

Business

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