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Inequality at workplace
The impact of organizational structure on
The impact of organizational structure on
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An organisations internal pay structure can affect the way employees perform to the business strategy. Where a workers performance not only depends on the level of pay they receive (Solow, 1979, in Alexopoulos & Cohen, 2003), but also takes into consideration their pay compared to workers above and below them, those within the same occupational group, and the external labour market (Akerlof and Yellen, 1990). Pfeffer (2005) argues that wage compression, which is the act of reducing the size of the pay differences among employees, improves productivity. To gain competitive advantage, organisations need to acknowledge not only hierarchical wage compression (between management and employees) but also the differences between individuals at similar levels. Narrowing pay discrepancies in a team-based environment promotes a sense of community and a common fate, leading to greater efficiency as it lessens interpersonal competition but increases collaboration (Pfeffer, 2005). Pay compression thus advocates equity theory; that if internal factors and external competitiveness are aligned, employees perceive their pay to be fair and exert maximum effort (Milkovich, Newman, Gerhart, 2011).
From this perspective, compressed pay is seen as a motivational tool to incentivise workers due to the fact that there is no added value for an individualistic nature, but rather a collective tendency. Pfeffer (2005) also argues that wage compression helps to de-emphasise pay. This in turn creates employees who are not driven by pay but value organisational attributes like the people as well as having work that is exciting and rewarding to them. By equalising pay, it draws attention to intrinsic forms of motivation. If pay is less salient, it means motiva...
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...A kantian theory of meaningful work. Journal of Business Ethics 17, 1083–1092.
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Lallemand, T., Plasman, R., & Rycx, F. (2004). Intra-firm wage dispersion and firm performance: Evidence from linked employer-employee data. Kyklos, 57, 533-558.
Lazear, E. (1989). Pay equality and industrial politics. The Journal of Political Economy, 97 (3), 561-580.
Milkovich, G., Newman, J., & Gerhart, B. (2011). Compensation (10th ed.). Singapore: McGraw-Hill.
Pfeffer, J. (2005). Producing sustainable competitive advantage through the effective management of people. Academy of Management Executive, 19 (4), 95-108.
Plimmer?
The remaining explanations of gender-based wage differences fall under the umbrella category of discrimination. Employer preference discusses the ways in which employers differentiate between potential employees based on noneconomic factors such as physical appearance. Statistical discrimination uses the ways in which employers stereotype groups of people and therefore avoid hiring certain people because of their association with a typical group. This plays into the gender-based wage gap because employers tend to view women as the group they are a part of – the female popula...
The first significant equality legislation in the UK was the Equal Pay Act 1970 . However, the issue of equal pay in the workplace can be traced back to the 19th century. This essay will analyse how economic and social factors of the 19th and 20th century were the reasons for highlighting the issue of equal pay in the workplace. However, with the gender pay gap standing at 19.2 per cent in 2015 , there can be no defining reason for equal pay in the workplace. Consequently, this essay will then discuss how equality legislation has challenged unequal pay in the workplace, but in its reactive approach has failed its objective. Furthermore, this essay will then discuss the remedies for equal pay in the workplace by analysing the impact on both
Wimmer, Bradley S. "The Minimum Wage and Productivity Differentials." Journal of Labor Research Fall 2000: 649. EBSCOhost MasterFILE Premier. 22 April 2001 .
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...
"First, Break All the Rules: What the World's Greatest Managers Do Differently” was written by Marcus Buckingham and Court Coffman. It’s based on in-depth interviews by the Gallup organization of over 80,000 managers in over 400 companies to help managers as well as talented employees who have the potential and plan on eventually becoming great managers. The book is mainly branched into "four keys" that are vital to proclaim the potential and perplexity of human resource development in organizations of all sizes. These keys consider the capacity of a manager to select the optimum personnel based on talents, results, strengths, and fit. It’s an excellent book that turns the conventional wisdom about managing people upside down and provides great insight on how to assess the performance of an organization in general.
The wage gap is expressed as the difference between female and male earnings. As of 2012, women earn 8...
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
Blau, F., & Kahn, L. (2007). The Gender Pay Gap: Have Women Gone as far as they can. Academy of Management Perspectives , 21 (1), 7-23.
Holloman, C. (1974), “What McGregor Really Said”, Business Horizons, Vol. 78, No. 1, pp. 17 Issue 6, p. 87 – 92. Karlöf, B. & Lövingsson, H. (2005), The A to Z of Management Concepts and Models, Thorogood, London. Kermally, S. (2005), Gurus in People Management, Thorogood, Sydney.
However, that does not mean that inequalities no longer exist between the two genders, the pay gap between men and women is one of the larger gender inequalities seen today. According to an article “ Explaining the Pay Disparity Between Women and Men in Similar Jobs” the authors state that, “ equal pay ranked higher than health care, family and medical leave, pensions and social security for most important legislative issues” (Hessaramiri,Kleiner 3). People want something done about this injustice and are looking towards the government to intervene. The Equal Pay Act is one of these interventions put in place to make employees under the same profession paychecks’ equal no matter the gender. After forty years though, the Equal Pay Act has done little to stop the pay gap from continuing. Hessaramiri and Kleiner inform us that, “ According to the Monthly Labor Review, the weekly earnings of women were lower than that of men for full time employees across all broad occupational categories” (4). Most of the time these employees suffering from the pay gap do not even realize that they are being
Title: Why are workers paid differently? Discuss with reference to the role of the labour market, the state, employers and workers influence (both direct and indirect) in determining pay levels. Name: Hu Jinkang Words: 3114 Student number: 16014487 Introduction
A number of motivational theories explain how rewards affect the behavior of individuals and teams. Performance related pay can have a motivational effect. Employees are motivated to increase prod...
Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.
Lengnick-Hall M.L.; Lengnick-Hall, C.A.; Andrade, L.S.; Drake, B. 2009. “Strategic human resource management: The evolution of the field.” Human Resource Management Review, 19, pp. 64-85.
In any organization, sometimes, monetary schemes doesnot get people involve to pursue work in a certain way, rather it demoralize and threatens the self-esteem of employees. According to Meyer (1975), “the basis for most of the problems with merit pay plans is that most people think their own performance is above average”. The amount may ...