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As we continue our discussion of motivation, here is an example for everyone to consider. Everyone, what happened here???
Mary graduated at the top of her class, and was hired as a Senior Analyst for a very prestigious firm. She is very satisfied with her work and salary. It is very challenging and rewarding, and she gets along well with her peers and her boss.
Her 1-year anniversary is approaching, and she is called in for an annual performance review. Her boss has always been good at providing feedback throughout the year, but this formal review is tied to a possible raise. Her boss explains she has performed at a very high level, and would like to offer Mary a 20% raise. She is completely surprised! Most everyone has received a 3-5% increase, so 20% is unheard of. She knows that will put her at a new salary of $80,000.
Mary thanks her boss, walks out of the office, and has a smile from ear to ear. She is greeted by a new hire, Sue. Sue introduces herself and explains she recently graduated and was also hired as a Senior Analyst. Sue states: “This is such a great place! The people are so friendly.” Mary says “Yes, and hard work really pays off here.”.
Sue says, “That’s what I hear, but I can’t believe the starting salaries are so good here. I mean, I still can’t believe they offered me $85,000 to start!!!”
Mary is outraged. She abruptly leaves, and storms out of the office.
What changed here? Which theory of Motivation from Chapter 5 best explains this situation?

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