Ccua Case

The current pay practices instituted by CCUA are not externally equitable. Based on the information provided within the case study many employees both current and past were not satisfied with their pay or benefits. Therefore, externally equitable goes beyond pay. However, in the case with CCUA, pay serves as a means to attract and retain workers to the company. The best method to utilize would be to increase the pay for he unsatisfied employees. Thus, turnover does not sit well with CCUA as it is affecting productivity and costs. In order to help remedy the issues with pay it would be beneficial to incorporate an action plan or survey to assess the employee views and opinions on what needs to be done to enhance and increase employee satisfaction.
However the average weighted salary of a data processor is $27,500 therefore, the current pay for a data processor IIs is not externally equitable. The data processors are getting far less even considering the paid leave time than their counterparts in the
Moreover the equity theory shows that individuals who are underpaid should not only be less productive but they should also be less satisfied than their equitably paid coworkers. The importance of internal and external equity exists in part because of the way pay structures are set in organizations. Pay is generally based on 3 types of information. It is based on 1. The organization present pay structure, 2. Market surveys of jobs in other organizations, and 3. Results of job evaluations done within the organization. Furthermore, market surveys are designed to reflect the external worth of jobs. So all in all, companies with a stronger external influence on pay structure may be more interested in recruitment and hiring which would essentially increase turnover. Market rates account for the greatest differences in pay suggesting that managers place more importance on external factors than internal factors (Livingstone, Roberts, & Chonko,