Years ago, the Spanish Airline – Iberia, was near bankruptcy. To get out of this situation, the company forced its pilots to take pay cuts. When the financial situation improved, the company refused to reverse the cuts and pay salary increases due to inflation. The pilots perceived that as unfair (as compared to other pilots in the industry) and staged a work slowdown (call in sick for 10 days in a row). From Equity theory perspective, the staged work slowdown is an example of which inequity response?    Changing outputs      Leaving the situation

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Years ago, the Spanish Airline – Iberia, was near bankruptcy. To get out of this situation, the company forced its pilots to take pay cuts. When the financial situation improved, the company refused to reverse the cuts and pay salary increases due to inflation. The pilots perceived that as unfair (as compared to other pilots in the industry) and staged a work slowdown (call in sick for 10 days in a row). From Equity theory perspective, the staged work slowdown is an example of which inequity response?

  

Changing outputs

 

  

Leaving the situation

 

  

Choosing a different reference

 

  

Distorting perceptions of self

 

  

Changing inputs

 

 

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