Question 1: Imagine that you are working for a company that pays you 25% more than a fellow worker with comparable job duties. How would you feel about this? Would you be upset? I imagine that many students would not be upset at all. I imagine that many would think that ‘more money is better. Now, imagine that your parents also provided you with an allowance 25% bigger than your older siblings. Now how would you feel about being ‘overcompensated’? Discuss the reason for the differences (or lack thereof) in the perception using psychological research and principles related to equity. What implications does this have for the importance of equity in large, impersonal organizations versus small, friendly organizations? Explain these implications as well as provide mitigation strategies.
Question 2: Goal setting theory and research suggest that performance is maximized by both setting challenging specific goals as well as providing feedback. Explain why this is so. In your discussion, contrast vague vs. specific goals, difficult vs. easy goals, and more vs. less feedback. As a reminder, your response to this prompt must be supported by research and should not include your opinion.

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