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CASE #2 COMPENSATION DILEMMAS Case no 1. In general, everyone who has a job has to be treated equally and has to get payed equally without any discrimination, based on gender, ethnic background, color or age. This is guaranteed by the Equal Pay act and Lilly Ledbetter Fair Pay Act. Different states have different compensation practices. While in US you can negotiate related to your compensation with the employer, in other states, especially in those underdeveloped countries, the compensation criteria’s are fixed and any employee cannot negotiate related to compensation (especially in public sector). In the concrete case in those circumstances when an organization determined that two different jobs are equal in terms of value to organization but again while the labor market offers those common profiles of occupations versus deficient profiles, in these circumstances, the company can make some differences in order to attract specific qualified persons for the position or …show more content…
Besides this, an employer can use other tools to value the commitment and the engagement of an excellent employee. As a manager, from my experience (because in my country the salaries are fixed and based on the performance I cannot decide for a merit rise) I used different tools, in order to encourage my team. Sometimes, not just the money is a satisfaction, especially for young professional they better prefer do get promoted, to enjoy different experiences (such travelling abroad for the purposes of capacity building) or even to get announced as the best employee of the year. Therefore, besides compensation, there are other forms, that are not just material but are some other honorable tools that a manager could use in order to motivate and encourage the team
Throughout the world, discrimination in all forms has continued to be a constant struggle; whether it’s racial, gender based, religion, beliefs, appearance or anything that makes one person different from another, it’s an everyday occurrence. A major place that discrimination is occurring at is in the workplace. One of the largest problems discrimination issues is believed to be gender. Women, who have the same amount of experience as men are not getting paid at the same rate as men, these women also are equally trained and educated. According to the article Gender Pay, it was discovered in 2007 that a woman makes 81 cents for every dollar a man earns.(“Gender Pay”) . This shouldn’t be happening in today’s society for the fact the society lived in today is suppose to be more accepting. Men are viewed as being more popular, valuable and having higher powers than women. The Reason Discrimination is involved in the equal pay equal work is because of the significance it has to how some businesses pay their employees.
If women ask for pay equality then, some jobs will fire them and discriminate them. (Fratti, Karen ) Personally, I feel it helped women when the Lilly Ledbetter act passed because women have more power to tell their managers if they are getting the same payment as men do.
A Woman may work in the same career as a man and work equal time but in the end the woman is still getting paid less. The statistics are even worse for women of color. Women of color are paid 55-64 cents compared to every dollar earned by a man. According
Satya Nadella once said, “We must ensure not only that everyone receives equal pay for equal work, but that they have the opportunity to do equal work.” It was found that women only earn seventy-nine percent of what men make in similar jobs. The gender pay gap has been in account for over fifty years, and yet it is still an issue today. Although businesses are required to practice fairness in compensation amongst all employees regardless of gender, age, or race this is not always the case. Businesses need to instill stricter policies against unequal pay to eliminate racial discrimination, reward and recognize performance and experience, and do away with the gender gap.
To resolve the gender wage gap, the government should consult with employers in federally-regulated sectors to apply a gender-based analysis to the design, development, implementation and evaluation of the policy. The law should clearly outline the systematic discrimination that women face in the workforce. This policy would entail employers to determine whether gender-based disparities exists and reevaluate the current pay system from an equity perspective to ensure and promote pay transparency. The law of ensuring pay equity should first be applied to the public sector, including federal public servants, employees of Crown cooperation and federally regulated companies. After this law has been found to be effective, it is also recommended that private corporations follow the same suit and comply with the pay equity
Throughout the history of the world, discrimination in all forms has been a constant struggle, whether it is race, gender, religion, appearance or anything else that makes one person different from another, it is happening every day. One significant discrimination problem that is affecting many women takes place in the workplace. As of recently, the gender wage gap has become a major topic for discussion. The gender wage gap is the average difference between men and women's aggregate hourly earnings. Women who are equally trained and educated, and with the same experience, are getting paid way less than men.
The Equal Pay Act (part of the Fair Labor Standards Act), forbids employers to compensate women differently for jobs that are “substantially equal”, that is, almost identical. Traditionally, women have worked in different occupations than men; these occupations tend to be substantially different, pay less and confer less authority.
The ability to award both genders, in the same profession, equal pay is often unmanageable as a result of funding differences. Similar situations irrespective to gender also
Discrimination at work is a touchy issue. Most people, if not all, have experienced some sort or form of it and they ignored it, quit, or got fired from their job. Women tend to be more emotional than men and when women are judged and discriminated they are offended by it immediately. Also, the fact of women getting a lower income than men for the same job is almost unbelievable. It is very important to be concerned on the issue because it is constantly increasing throughout the United States. It upsets me that women are paid less than men because women have the same ability and work ethic as men do, but they are looked at differently. According to AAUW, women are making 77 percent of what men make. This rate hasn’t changed since 2002 (Hill, 2013). Statistics show that women will never make as much as men due to the thought of never being comparable to men (Williams, 2013).
Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.
It is important for manager to understand that what motivates the individuals. There are different kinds of motivation theories which reveal that individuals are motivated by different factors. For example there is extrinsic motivation and intrinsic motivation (Amabile, 1993). Extrinsic motivation refers to the motivation that one has for the extrinsic rewards such as pay, status, power, etc. Then there are intrinsic motivating factors such as the chance to exercise one’s skills, the opportunity to learn and personal development. Research suggests that various factors motivate employees in a different degree depending on their nature. It would therefore be important for the manager to understand that what are the motivating factors for individual employees and then provide them incentives accordingly so that they can work in a more productive fashion. Once the individuals work with greater excitement and vigour it would automatically lead to better performance.
Women’s right to equal pay or gender pay gap has been a subject of discussion over the years in the united states, women perform similar jobs to men, but are paid
In large organisation, competition is not only in the market for goods and services but also for the quality of employees. As such, a large organization can only become attractive to the most skilled and high quality workers if it has an effective compensation and benefit plan. The key purpose of an effective compensation and benefit system is to provide employees with the right rewards for their work and right behavior in the workplace. Typically, organizational success is determined by the quality of employees an organization has. In turn, the organization can only attract such quality workers and maintain them through effective compensation and benefit
tro: Compensation for today’s average worker has always been a highly sensitive topic for any employer. Determining fair compensation can be an overbearing task, as there are many contributing factors that make up the general pay scale. When determining pay, a company must always consider the hourly amount, the benefits that may be offered, any incentives that could potentially be incurred and ensuring that their employees have an established work life balance. For an employer to be successful in determining compensation for their associate, they must remain grounded around 1 key principle. Employee compensation is determined by expertise, education and the daily duties performed by the employee.
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.