Answer to Question #218117 in Management for Nande

Question

Read up the concepts of internal, external and individual equity and explain to Zandi why these differences might occur. What should HR do in the instance of feeling upset about your job and salary

Answer 1

Concept of internal, External, and Individual Equity

Internal equity deals with employees' pay packages compared to others under the same company, while external equity reaches the pay package with employees from different organizations. Therefore, the difference can present itself if a firm raises its pay package internally by retaining its earnings and issuing new shares (Nasse & Sawadogo, 2019). The shares must be at lower costs than the initial price, and they might face flotation costs.   

           When HR is upset about the work or salary of a particular employee, they should follow some procedures to find a solution. First, they should learn the employee's strengths, identify the problem, and research through engaging with the employee, be transparent, engage in clear communication, plan through activities like screening well on their background, past and behavioral interviews, be prepared, show respect and be fair. The above steps can aid in finding a better solution to many organizational issues.

References

Nasse, T. B., & Sawadogo, Y. M. (2019). Internal equity and customer relationship management in subsistence markets: a comparative and a qualitative study of three private companies in Burkina Faso. International Journal of Management & Entrepreneurship Research, 1(1), 42-58.