Salary Inequities at Acme Manufacturing
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Salary Inequities at Acme Manufacturing Brandi L. Woods Excelsior College
Author ote
!he "ut of Control Inter#ie$ % Salary Inequities at Acme Manufacturing &iscrimination of any 'ind is a #ery #olatile su()ect. &e *ending on the em*loyee+s )o( satisfaction and commitment this situation could sno$(all into litigation if not handled *ro*erly. If the em*loyees are satisfied and committed, they $ill (e more agreea(le to negotiate a successful conclusion to issue at hand. Salary Inequality
-oe Blac' realied he had salary situation $hen he too' o#er as *resident of Acme Manufacturing. Blac' noticed that there $as considera(le inequity in the *ay structure for salaried em*loyees. After a discussion $ith the human resources director he (elie#ed that the inequality stemmed from indi#idual (argaining $ith the *ast *resident. Scrutiniing the salaried *ayroll sho$ed that 1/ of the %0 em*loyees $ere female, three $ere frontline factory su*er#isors, 12 $ere nonmanagement and one $as the human resources director. !he female staff $ere (eing *aid less than their male counter*arts, the human resources director $as also under *aid. Blac' hired a com*ensation consultant, they decided that all %0 salaried )o(s should (e in the same )o( assessment grou*. !he )o( e#aluation sho$ed that the 34 director and the three female su*er#isors $ere (eing under*aid com*arati#e to equi#alent male salaried em*loyees. 3e 'ne$ that if the under*aid female su*er#isors too' the case to the local EE"C office, the com*any could (e found guilty of sex discrimination and then ha#e to *ay considera(le (ac' $ages. 5&essler, %216, *.67/8 Option One – Do Nothing
Acme Manufacturing Com*any could do nothing, the em*loyees negotiated their o$n *ay. Blac' has the o*tion to say nothing and let the situation slide. 3e only needs to address the com*ensation of the 3uman 4esource director. !his is not an o*tion I $ould recommend, Acme
!he "ut of Control Inter#ie$ 6 $ould still (e in #iolation of equal *ay act of 19:6. ;ayment of salary $as not made in accordance to their com*etencies. !he s'ill of *ersonnel $as not gi#en im*ortance in the com*any. !he Equal ;ay Act and !itle
Acme Manufacturing could gradually increase the female su*er#isors+ salaries. When the female su*er#isor+s salaries are increased, the su*er#isors ha#e no case to re*ort to the EE"C for sex discrimination. Small com*anies can also (e rumor mills, if the female em*loyees $ere to all suddenly recei#e significant raises= it $ould could u*set the male em*loyees. By gradually increasing their salaries this can (e a#oided. ;roceeding in this fashion $ill not hinder the gro$th, *roducti#ity and family culture of this com*any. Option Three – Increase Immediately or Increase with Transparency
Acme Manufacturing could increase the female su*er#isor salaries immediately, (ut $ould ha#e to ex*lain $hy the sudden increase $as made. !rans*arency is really the only o*tion. Mridul Mahesh$ari $rote that >!rans*arency is related to the sharing of true facts $ith the em*loyees. In any organiation, $hen the em*loyees are not communicated o*enly a(out the changes and ex*ectations, they dou(t the intention of management.? 5Mahesh$ari, %212, *. @28 Mr. Blac' should sit do$n $ith the female em*loyees and come u* $ith an settlement agreement regarding (ac' $ages. Mr. Blac' should let the female su*er#isors that he disa**ro#es of the $ay that his *redecessor (eha#ed, they $ill (e immediately (e ele#ated to salaries (efitting their *ositions.
!he "ut of Control Inter#ie$ / Which Option Should Mr. lac! "hoose
"*tion one is out (ecause it causes Mr. Blac' and Acme Manufacturing to continue to (rea' the Equal ;ay Act and !itle -o( satisfaction is an affecti#e or emotional res*onse to$ard #arious facets of one+s )o(.? 5reitner inic'i, %216, *. 1:78 !he ans$ers to these questions, $ill assist Mr. Blac' in deciding $hether to gradually increase the female em*loyees+ salaries or to (ring the em*loyees in on the solution to the *ro(lem. !he issue of (ac' $ages $ould still (e *resent if Mr. Blac' decided to 'ee* them in the dar'. If the em*loyee+s in#estigate on their o$n they may feel (etrayed and ta'e the case to the local EE"C any$ay.
!he "ut of Control Inter#ie$ 0
4eferences
&essler, D. 5%2168. Human resource management 516th ed.8. **er Saddle 4i#er, -F ;rentice 3all.
reitner, 4., inic'i, A. 5%2168. "rganiational (eha#ior. e$ Gor', GF McDra$ 3illHIr$in.
Mahesh$ari, M., Singh, M. 5%2128. Organizational readiness for performance-related payF ocus on Do#ernment of India Em*loyees.
