Cases

A Living Wage

At the beginning of this chapter you read about Aetna’s decision to increase the pay of its lowest paid employees. Using the information presented in this chapter you should now be able to answer these questions.

Questions for Discussion

  1. 8-24. Do you think that higher pay caused higher productivity and lower turnover for Aetna? What leads you to this conclusion?

  2. 8-25. What factors motivate you personally?

  3. 8-26. Explain Aetna’s decision in light of the classical theory of motivation.

  4. 8-27. How could Maslow’s hierarchy of needs help to explain the relationship between pay and productivity?

  5. 8-28. Use equity theory, expectancy theory, or two-factor theory to explain Aetna’s decision.

  6. 8-29. Do you believe that companies have ...

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