Mgt 651 - Behavioral and Organizational Systems

MGT 651-66/SPRING SEMESTER 2016

BEHAVIORAL AND ORGANIZATIONAL SYSTEMS

EXECUTIVE MBA/HEALTH ADMINISTRATION PROGRAM

1. What is meant by internal and external equity and how is each achieved in organizations? You had a reading on “Why is it so hard to be fair” in Organizations. What insight does this reading provide on how to ensure equity?

Equity is considered one of the Justice Theories.

Regarding Equity in the workplace, Employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others.

Equity occurs when I/O = I/O of comparison person;

Inequity occurs when I/O does not equal I/O of comparison person.

Internal equity is observed within the organization itself measuring comparable pay to comparable work for different job descriptions. There are varying systems utilized within organizations to maintain internal equity such as: 1) Classification Systems to establish job classifications, salary ranges mostly based on content of work; 2) Point System which using job categories and assigning points with pay ranges that are higher;

External Equity is observed outside of the Organization by comparing company salaries to other like professionals in the workplace.

The reading promotes the use of Process Fairness which is creating and implementing a thoughtful plan to minimize the costs of decisions that might threaten employees and maximize the benefits of decisions that may be sources of opportunity for them. The tools discussed in this concept can easily be used to promote equity within a company by:

- Creating an environment and opportunity for employees to have input in the workplace;

- Place appropriate time and effort to promoting understanding and awareness around decisions;

- Implementing corporate decisions with care and sincerity;

2. How does Herzberg’s view of satisfaction/dissatisfaction differ from traditional views? Explain how this theory might be applied in a healthcare setting;

Herzberg’s two factor theory is based on Hygiene and Motivation. Hygiene factors such as proper working conditions, salary, relationship with co-workers do not provide satisfaction, yet these items are needed in order to avoid dissatisfaction. The Hygiene factors must be appropriate to the employee, BEFORE they can move to become satisfied and resultantly Motivated by Achievement, recognitions, promotion.

Herzbergs theory differs in that he places Hygiene