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MGT501 GDB 1 Solution Spring 2017

Discussion Question:

Do you think External Equity prevents the high performers from leaving job and it attracts the skilled employees for an organization? Why or why not?

Solution : Yes I agree External Equity prevents the high performers from leaving job and it attracts the skilled employees for an organization. The reason are given in following
Employees needed to attract and retain the best and brightest.
Some employees compare their input/output ratio to that of employees other firms to determine whether they are fairly paid.
People don’t like working f a cheap company instead they would rather work for one that pays the going rate for the type of work they do.
Jobs in fields where the knowledge base is constantly changing require that the company meet external market prices.
External offer may be made by another employer at a slightly higher level, and it may be in the best interests counter offer for a top performer.

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