According to the study by Peter Cappelli and Peter Sherer, which of the following is true of two-tier wage plans?
A)The plans are characterized by instances where two employees doing different level of jobs get the same pay.
B)The lower-paid employees always move to the higher-paying tier.
C)The lower-tier employees are more satisfied despite being paid less money for the same work.
D)The employees in the lower tier have lower comparison standards than those in the higher tier.
E)The lower-tier employees remain dissatisfied until they move into the higher-paying tier.

Question

Quizplus · Accepted Answer

According to a study by Peter Cappelli and Peter Sherer found that the lower-paid employees were more satisfied on average. Apparently, those in the lower tier used different (lower)comparison standards than those in the higher tier. The lower-tier employees compared their jobs with unemployment or lower-paying jobs they had managed to avoid. As a result, they were more satisfied, despite being paid less money for the same work.

According to the Study by Peter Cappelli and Peter Sherer