SUBJECT-human resources management (HRM)

DR. J.K.PATEL INSTITUTE OF MANAGEMENT

Guided by : Prof. kosha nair GROUP 1

NAME

ROLL NO

SAGAR BARSIYA TARUNKUMAR RAJAYAGURU

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117110592015 117110592016

Establishing Pay Plans

Case Incident: Salary Inequities at Acme Manufacturing

Joe black was trying to figure out what to do about a problem salary situation he had in his plant. Black recently took over as president of acme manufacturing. The founder and former president, bill George, had been president for 35 year. The company was family owned and located in a small eastern Arkansas town. It had approximately 250employees and was the largest employer in a community. Black was a member of the family that owner acme, but he had never worked for the company prior to becoming president. He had an MBA and a law degree, plus five years of management experience with a large manufacturing organization, where he was senior vice president for human resources before making his move to Acme. A short time after joining Acme, Black started to notice that there was considerable inequity in pay structure for salaries employees. A discussion with the human resources director led him to believe that salaried employees pay was very much a matter of individual bargaining with the past president. Hourly paid factory employees were not part of the problem because they were unionized and their wages were set by collective bargaining. An examination of the salaried payroll showed that there were 25 employees, ranging in pay from that of the president to that of the receptionist, a closer examination showed that 14 of the salaried employees were female. There of these were front-line factory supervisors and one was the human resources director. The other 10 were nonmanagement. This examination also showed that the human resources director appeared to be underpaid, and that the three female supervisors were paid somewhat less than any of the male supervisors. However, there were no similar supervisory jobs in which there were both male and female job incumbents. When asked, the HR director said she thought the female supervisors may have been paid at a lower rate mainly because they were women, and perhaps George, the had working husbands. However, she added she personally thought that they were paid less because they supervised less-skilled employees then did the male supervisors.

Black was not sure that this was true. The company from which black had moved had a good job evaluation system. Al though he was thoroughly familiar with and capable in this compensation tool, black did not have time to make a job evaluation study at Acme. Therefore, he decided to hire a compensation consultant from a nearby university to help him. Together they decided that all 25 salaried jobs should be in the same job evaluation cluster; that a modified ranking method of job evaluation should be used; and that the job descriptions recently completed by the HR director were current, accurate, and usable in the study. The job evaluation showed that the HR director and the three female supervisors were being underpaid relative to comparable male salaried employees Black was not sure what to do. He knew that if the underpaid female supervisor took the case to local EEOC office, the company could be found guilty of sex discrimination and then have to pay considerable back wages. He was afraid that if he gave these women an immediate salary increase large enough to bring them up to where they should be, the male supervisors would be upset and the female supervisors might comprehend the total situation and want back pay. The HR director told black that the female supervisors had never complained about pay difference The HR director agreed to take a sizable salary increase with no back pay ,so this part of the problem was solved. Black believed he had four choice relative to the female supervisor: 1. 2. 3. 4. To do nothing. To gradually increase the female supervisors salaries. To increase their salaries immediately. To call the three supervisors into his office, discuss the situation with them, and jointiy decide what to do.

Questions 1) What would you do if you were Black? 2) How do you think the company got into a situation like this in the first place? 3) Why would you suggest Blankenship pursue the alternative you suggested?

Case Incident: Salary Inequities at Acme Manufacturing

INTERNATIONAL LOBOUR ORGANISATION

Employment of women

Maternity protection

Night work

Employment in unhealthy process

Equal pay

Employment Of Women the conventions and recommendation adopted to regulated condition of employment exclusively of women workers deal with a.) Maternity protection:The first convention dealing with maternity protection conventection,1919 which was subsequently revised by convention adopted in1952.

b.) Night work:The first convention dealing with prohibition of employment of women during night was night work con.1919 the night work convention was adopted in1990

c.) Employment in unhealthy process:The white lead convention,1921 prohibits the use of white lead or Sulphate of lead by women in industry painting.

d.) Equal pay:The equal remuneration convention 1951, which has been ratified by India, calls for equal remuneration for man and women for work of equal value. worker with family responsibility con. And rec.1981 also concern women

1. What would you do if you were Blankenship? This should generate lively discussion. Few students will argue for a do nothing approach, as the risk of legal damages is too high. Some students will argue that the discrepancies in salaries will not remain secret. If this is true, then women supervisors will discover they are underpaid and may seek additional back pay. Some students will suggest the company inform the supervisors that as a result of a recent compensation study, it was determined that these jobs were underpaid. The women in question will receive a larger raise at the time of their next performance review. Students in favor of this proposal will argue that by making it public but deferring the adjustment, they will signal that it is not a major crisis. 2. How do you think the company got into a situation like this in the first place? The informal system suggests that the local culture has overly influenced the compensation process. Issues like whether a spouse is working are not part of a professional compensation practice.

 Title VII of the 1964 Civil Rights Act This act makes it unlawful for employers to discriminate against any individual with respect to hiring, compensation, terms, conditions, or privileges of employment because of race, color, religion, sex, or national origin. Equal Pay Act (1963) An amendment to the Fair Labor Standards Act designed to require equal pay for women doing the same work as men.

3. Why would you suggest Blankenship pursue the alternative you suggested? Students will provide a variety of reasons. Those suggesting back pay as well as a raise will argue that: a. The company needs to maintain fairness (a social justice approach). b. They will signal to employees that unfair practices will not be tolerated. c. They will gain the support of a group of stakeholders. Those suggesting raises but no back pay may argue: a. The women will likely feel their needs have been addressed. b. It will be less expensive. c. It will be less likely to draw a negative response from White males. d. If the women push for back wages, they can be granted later.
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