Case of The Well-Paid Receptionist

1. Use the ideas of distributive fairness and equity theory to explain why Harvey Finley thinks he
   pays Cathy Brannen too much.
2. Use the ideas of distributive fairness and equity theory to explain why Cathy Brannen might
   think her pair is fair.
3. What are the likely consequences if Ms. Brannen’s pay level is truly known to other
   organizational members? Use equity theory to support your answer.
4. Suppose that you had been in Mr. Finley’s position at the time that he hired Ms. Brannen. What
   would you have done differently to avoid the current situation while still attracting her to join
   his fledgling firm?
5. What ethical or moral issue does this case raise?
6. What should Mr. Finley do now? Be sure to consider procedural fairness in framing your answer.

Sample Solution