Learning Objective: This case will help both undergraduate and graduate students improve their understanding of several important aspects of employee motivation and compensation management.
Managers and employees develop an implied contract with each other regarding obligations. The repercussions when the contract is violated can be significant. When employees do not complete their duties or when the organization does not acknowledge the effort of an employee, as in this situation, the contract can be threatened. This case helps students explore the ramifications for both types of contract breach (organization to employee and employee to organization).
Employees judge an organization in terms of both distributive and procedural justice. This case challenges students to design processes that maximize these justice perceptions.
Managerial decision making is prone to strong emotional considerations. Managers strive towards their own perceptions of organizational justice. Although there is much prescriptive advice on how to manage businesses, little is devoted to managing the social aspect of policy development and implementation. This case explores some of the limitations that can affect the decision-making process, including bounded