Question

Research on the effects of two-tier wage plans found thatA. lower-paid employees were less satisfied on average than higher-paid employees.B. lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves.C. lower-paid employees expected to be promoted into the second tier in a short time span.D. equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other.E. both existing employees and new employees have a similar pay rate.

Answer 1

Answer:

Option B is correct

Explanation:

Lower wage tier were significantly more satisfied with the payment, work and were more optimistic due to confidence of job security which makes them committed. They had lower expectations than higher paid employees partly because of the reference group.