Answer to Question #156391 in Management for Dina

Question

Since graduate, Ali has been working for the same employer for over three years. He liked his job and environment until a new hire, Ahmad, a fresh graduate, joined his firm a few months ago. Ahmad is in the same department and Ali has to train Ahmad. Ali found that Ahmad’s pay is only slightly lower than his. He hears that the rationale was that it has become difficult to recruit new talent unless his employer offers a competitive wage. Ali understands that but he feels that while new employees get a good deal, older employees’ pay has not been adjusted to reflect the times. 

Meanwhile, Aminah is a dedicated worker has been with the company for over two years. One day, she overheard her male colleagues complaining about their pay. Initially, Aminah thought she must be earning more than them because her dedication has earned her employee of the month awards each year. Aminah was shocked to learn that despite being a better performer, her pay has been 20% lower than her male counterpart. Aminah feels demotivated and withdrawn as she perceives this as gender discrimination.

Based on the above case, answer the following questions:

Question 1 (5 marks)

Assume you are as HR manager, what would you do for Ali and Ahmad?

Question 2 (5 marks)

How to ensure fairness and equity in pay structure?

Question 3 (5 marks)

Discuss the effects of unfairness and gender discrimination in pay structure to the employees.

Answer 1

Question 1 

As HR, I will explain to both of them that the disparity in pay is due to diverse experience. I will promise to adjust their pay to motivate them and enhance organization performance. 

Question 2 

There should be a balance between inputs and outcomes, and experience among employees to determine fairness in pay structure. For equity to prevail, HR ought to adjust pay as needed. Therefore, any form of unfairness and discrimination must be eradicated from the pay structure. 

Question 3 

Unfairness and gender discrimination have negative effects on employees. They create the gender wage gap that affects a firm's performance, office culture, and the bottom line while hindering economic growth among workers. Therefore, in such episodes, workers feel demotivated and yearn for withdrawal tendencies.