Elizabeth and George Are Talking About Their Work at Apex

question 7

Essay

Elizabeth and George are talking about their work at Apex Manufacturing. They both perform the same job, work the same number of hours, and are relatively equal in their performance levels. Elizabeth mentions to George that she is making $18 per hour. George is surprised by this, because he is only making $16 per hour. According to equity theory, what would you predict George's reaction to be?
What sort of behaviors might you see from George?

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Notes Receivable

Notes receivable are written promises for amounts to be received, typically detailing the interest rate and when the principal and interest payments are due.

Claims

Demands for payments or property ownership typically made through legal or financial processes by creditors or insurers.

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific main account, facilitating detailed tracking and reconciliation.