Question 2:
A manager accepts a job in a new firm and receives a sizable increase in compensation. It is an excellent match; he loves the work, finds his coworkers capable and fun to work with, and believes in the company's mission. The firm expands rapidly. Two years later, he is talking with a recent hire who does the same work, has similar work habits, and is also known for producing high-quality work. The manager discovers that the recent hire makes $5,000 per year more than he does. Over the next few months, the manager's attitude toward the company worsens and he reduces his efforts. Using equity theory, explain why in three or four sentences.
Hint: Describe the manager's inputs and outcomes.