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Ethics Versus Pay Almost two years ago the company where I am employed, RGIS LLC, mandated a pay policy change for the hourly employees. Hourly employees make up over 95% of RGIS’s labor staff. This new, four-tier payment scale, aptly named “Pay 4 Performance” (p4), ultimately affected thousands of employees who had been with the company for years and had high pay rates simply as a result of longevity. The four new levels would have a matching pay scale based upon each individual employee’s production. These levels are what RGIS calls an ASET level: Auditor, Specialist, Expert, and TopGun, with each level advancing to a higher production and pay rank, respectively (Company). p4 and ASET pay only for performance. According to RGIS, this levels the playing field and gives every part-time team member the equal chance to advance their pay. The following is an example of the philosophy behind p4. Let’s assume a store (event) has 100,000 pieces of inventory. 10 team members are scheduled for the event. As a Calc store – an event that RGIS has minimum standards set for – the overall APH must be 2000pph (pieces per hour). APH or Average Per Hour is the total pieces counted divided by the total man-hours used. The event itself has an APH standard, as do individual auditors counting in the store. 100,000 pieces of inventory divided by a 2000pph standard will require 50 man-hours. 50 man-hours divided by 10 team members equals a 5-hour count. Five-hour counts make up about 3/4ths of RGIS’s target completion times; additional pieces require additional people, and vice-versa. The 2000pph standard that this store has would be met if everyone counted at that speed. But in reality, not everyone has the same production capabilities. This is whe... ... middle of paper ... ...t be in business very long. But, for instance, what if RGIS was offered the chance to perform one “test” inventory for a company that had many stores and the inventory went extremely well because of the customer service levels provided? RGIS would have the opportunity to service this customer’s other stores not because of the data, but because of the service they received. This human factor played huge role in garnering business for the RGIS and yet their employees have no chance in earning any more compensation than they would have for simply putting data into a machine. Let’s look at other ethics principles and see where an example like the one above would fit in. Works Cited Company. United States RGIS, LLC. RGIS, LLC, 17 Apr 2010. Web. 06 Sep 2011. News. United States RGIS, LLC. RGIS, LLC, 23 May 2009. Web. 05 Sep 2011.
It's difficult not to be cynical about how “big business” treats the subject of ethics in today's world. In many corporations, where the only important value is the bottom line, most executives merely give lip service to living and operating their corporations ethically.
Ethics or rather morals entail mechanisms that defend, systematize as well as recommend conceptions of right or wrong. Many organizations develop ethical codes to ensure employees and employers understand the difference in doing good or bad. In that respect, ethics are an essential aspect of successfully running of any organization or government. Ethics ensure employee’s productivity levels are up to the required standards. It also assists them to know their rights and responsibilities. Additionally, employers, as well as any persons in management, are guided by them to ensure they provide transparent leadership. Ethics also defines how customers should be handled. Ethical codes govern the relationship between customers and an
Deciding which pay form to use when compensating employees is extremely important to a company. Many things are taken into consideration: labor costs, the correlation between performance and pay, customer service, and the ability to attract and retain employees which is extremely important to FastCat’s need for innovation. We believe a single pay structure coincides with our single based plan for the organization. We want to keep things simple and understandable to all areas of the organization. This strategy will allow employees to understand how their performance and the performance of others relate to the success of the company through specific measures. It is also important that the strategies align with the objectives of FastCat. We beli...
The concept of business ethics refers to a set of guiding principles that encourage individuals in an organization to make decisions based on the company’s stated beliefs and attitudes toward business practices within its industry (Lisa McQuerrey., 2016). Ethical and Unethical business decisions have long been a predicament encountered by organisations, these practices are concerned with how the companies interact with the global business world, and to their one-on-one dealings with individuals (Garry Crystal, 2016.) The concept of ethics and social responsibility emerged into the business world in the early 1970s after the end of World War I, saw these organisations become more profit driven resulting in negative impacts on society at large.
Jones, F.F., Scarpello, V., & Bergmann, T. (1999). Pay procedures - What makes them fair? Journal of Occupational and Organizational Psychology, 72(2), 129-145.
In Module 1, Kindred Todd faced quite a few ethical dilemmas that included her values and technical ineptness. The first predicament was tested her personal morals and ethics. According to, Cumming and Worley, OD practitioners are dealing more and more with value conflicts with powerful outside groups (Cummings & Worley, 2008). Kindred was immediately faced with the issue of knowing what was ethically correct but being told the unethical approach was the best in order to benefit the client and her job security. Although compromising is one of the many skills of organization developers there are still morals that should be followed on each assignment. Kindred, know that deceiving the clients was unethical, took the first step to working on behalf of the client and immediately involved her superior, Larry, to resolve a potential conflict In the project. While her actions went in vain when she told her boss to remove her from the project and provide the client with a more qualified resource, Kindred did what she thought to be the best approach.
Hays, Scott. "Pros & Cons of Pay for Performance." Workforce 78, Number 2 (February 1997): 68-72
The above examples of pay show that the more skills, experience employees are with the organization the more they are compensated. Organizations would benefit by utilizing the same practice’s Disney extends to their workforces. For those businesses whose primary purpose of their plan is to only meet compliance requirements could greatly benefit by developing a comprehensive benefit plan. This could help increase their return on investment. The value I believe a business may gain from Disney’s compensation plan is to appeal to competent workers, to maintain those workers, and to motivate workers to direct their energies towards achieving the goals of the organization. Companies can set up policies to conduct a market study on a regular basis to implement a real performance appraisal system and then work on retaining good employees and elimination of poor performing workers. By following Disney’s lead of in obtaining those who best fit their company’s culture and supporting the company’s Mission. To guarantee that the pay structure is externally competitive, a pay survey should be shown. The results of a survey to be valid, the market pay data must be from the relevant labor market for each benchmark job. I would advise that a survey of regional and global pay data should be collected from the company, because for example, most of the office support, HR and operations jobs will be filled by local applicants. A job analysis is the procedure of reviewing jobs in an alike business. The result of this process is a job description “that includes the job title, a summary of the job tasks, a list of the essential tasks and responsibilities, and a description of the work context “(Burke, 2008). A job description consists of the knowledge, skills and aptitudes necessary to do the job. A job evaluation is the process of adjudicating the comparative value of job within a company
The theoretical rationale for performance related pay can be explained in the ‘principal- agent moral hazard’ theory. The idea can be explained by assuming that employees have discretion over the level of effort they provide, and that they can choose between minimise and maximise their effort. The employer cannot observe effort directly over employee's decision either to provide low or high efforts. The idea behind this theory also stated if employer offers a fixed wage, then employees will choose to minimise their effors. The employer could make a decision by reducing the wage until it matches the value of the low effort level, but this may not always be desirable for...
Ethics is so important in business because it gives a company credibility. When a company has credibility the consumers trust the company and will tend to buy from the company more regularly. Employees become loyal and are motivated to drive the business forward. According to Schermerhorn (2004), “an individual that feels secure in a working environment can move on to being more focused on an organization’s goal.” Creditors and investors show their commitment and confidence by funding company development and consumer confidence is positive. Ethical business practices build fundamentals of trust with colleagues, competitors, staff, customers and every other individual and entity. The result of an unethical practices can be declining profits and a loss of market share. However, ethics are cultural specific. “What it is considered ethical in one culture may be considered unethical in another (Chiu,
Cascio (2016) stated "Ethical behavior is not governed by hard-and-fast rules. Rather, it adapts and changes in response to social norms. This is nowhere more obvious than in human resource management" (p. 574). There are also many potential ethical issues which organizations may face when operating a manufacturing plant in the United States. Some of the issues organizations may face could include working conditions for employees, obtaining employee information, preferential treatment, as well as establishing ethical policies and procedures for employees to follow. It is important that the organization is ethical in it 's practices because many times employees will follow by that example.
Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as (Gaye-Anderson, 2007) states how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for a given situation (Crane & Matten, 2010). Since law does not necessarily cover the morality of many controversial issues, moral reflection ought to be performed on any action, regardless of its lawfulness. The growing power of business in today’s society has enabled businesses to significantly impact the world. Hence, business ethics is highly relevant as it could determine whether businesses contribute or cause harm to the society at large.
The typical form of remuneration is a base pay for standard hours worked. Base pay is the rate for the job and is is, in most cases, the largest part of employees’ reward (Armstrong, 2016). Employers usually pay extra for working longer hours (overtime rates), unusual hours (for example, weekends and night shifts), and for working in particularly difficult conditions (for instance, there can be some supplements for noise, handling heavy loads, risks). These additional payments usually result from the obligations of collective agreements or laws. The impact of those two elements is therefore particularly important and this deserves to be addressed.
Business ethics are a set of moral rules that govern how a business operates, how people should be treated within an organization, and how business decisions are made. They are a crucial part of employment and in managing a sustainable business, mainly because of the serious consequences that can result from decisions made with a lack of regard to ethics. Even if you don’t believe that good ethics don’t contribute to profit levels, you should realize those poor ethics have a negative effect on your bottom line in the long-run. Every business in every industry has certain guidelines to which its employees must stick to, and regularly outline such aspects in employee handbooks.