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1、1第四组第四组1st Dec. 20192 Team MembersWeidao SHENK.K.LIANGJiaJun WUDaopeng TANGYonglin CHENShiqi YAN3ContentTwo questions from the caseCase backgroundAnalysis of Question2Analysis of Question14Case BackgroundSystem of the regular wages Japanese ManagerSystem of hired salarySalesman / Xiao BaiJapanese Ow
2、ned Company5Two questions from the case6Equity theory was first developed in 1963 by John Stacey Adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perc
3、eived inputs and outcomes of others (Adams, 1965). Adamss equity theoryAnalysis of Question17Equity theory equation: OP/IP=OC/IC OP:Individuals outcomesOC: relational partners outcomesIP: individuals own inputsIC relational partners inputsEquity theory equation 1Analysis of Question18Your rewardsCom
4、paring with othersMy rewardsMy ContributionsOP/IPOC/ICsssssMy contributionsYour rewardsMy rewardsYour contributionsOC/IC OP/IPYour ContributionsBIGsmallAnalysis of Question19Equity theory equation OP/IP=OH/IH OP:IndividualOP:Individuals s outcomesoutcomesOH: individualOH: individuals s past outcomes
5、past outcomesIP: individualIP: individuals s own inputsown inputsIH : individualIH : individuals s own past inputsown past inputsEquity theory equation2 Analysis of Question110OP/IPOH/IH Vertical Comparison Comparing with yourselfUnfair!Work hard!Analysis of Question111Reasoning of Xiao Bais behavio
6、rsAt the beginningOP/IP=OC/ICNew comerSatisfiedYears laterOP/IPOC/ICOP/IP OH/IH Top 20 salesmenStars of salesUnfairResignedAnalysis of Question112Final resultUnfair systemExcellent PerformanceXiao Bai will resign, choose company with hired salary system.Analysis of Question113Social comparisonCognit
7、ive distortionEquity normEmployees expect a fair return for what they contribute to their jobsEmployees determine their equitable return after comparing their inputs and outcomes with those of their coworkersEmployees who perceive themselves as being in an inequitable situation will seek to reduce t
8、he inequity either by distorting inputs and/or outcomes in their own mindsWhat can we learn from equity theory in business context?Analysis of Question114Regular Wage Hired Salary Which system is better?Analysis of Question215 Which system is better?Advantage disadvantageRegular wagep easy to operat
9、e and calculatep income protection for sales staffsp reduce hostility between coworkersp Good for sales that requires collective effortsp lack of incentives, sales are not sustainablep Unfair compensation system will lead to high staff turnover rate.Hired salaryp Rewards distribution according to em
10、ployees KPIp the management and monitoring costs are relatively low.p salesmen will focus too much on expanding sales, while downplaying long-term customers development.p Companys sales risk are transferred to sales staffs.Analysis of Question216l Conservative l Always suspiciousl The Protection of
11、nationalisml Do not care about personal gains or lossesl (Except for Japanese)l Oppose everything foreignAnalysis of Question217How should I deal with Xiao Bais suggestionn Give him a sense of Identity n Listen to the advice n Properly adoptedn Probably submit to the board n Try to improve the curre
12、nt incentive system Analysis of Question218How should I deal with Xiao Bais suggestiona. Material incentive: Design a “rule of game” For example: Company offer 5000Rmb for a sales but he must make a choice: Divide his 5000Rmb into two parts according to relevant percentage like 3/7,4/6 or 5/5. One part is for fix salary and the
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