Employee-Employer Interaction in Organizations: Industrial Relations

Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. It is basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. Need of Industrial Relation has arisen to defend the interest of workers for adjusting the reasonable salary or wages. It also helps the workers to seek perfect working condition for producing maximum output.

Workers/employees are concerned with social security measures through this. Industrial Relations is also needed for achieving the democracy by allowing worker to take part in management, which helps to protect human rights of individual. Wage and salary administration is the process of awarding the employees according to their work at an organization. It is obvious that people work to receive money, that is why they expect their payment to be given on time.

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The term "wage" may be defined as the remuneration paid by the employer for the services of hourly, daily, weekly and fortnightly employees. 'Salary is defined as the remuneration paid to the clerical and managerial personnel employed on monthly or annual basis'. This distinction between wage and salary does not seem to be valid in these days of human resources approach where all employees are treated as human resources and are viewed at par. Hence these two terms are used interchangeably. As such the term wage or salary can be defined as the direct remuneration paid to an employee compensating in services to an organisation.

The aim of wage and salary administration is to pay money to employees on time and according to the quality and the quantity of their work. Generally, employees have a stable working day and receive the definite payment for it, but there are also cases when one is paid on the basis of the quantity of the fulfilled work. Wage and salary administration is the responsibility of the human resource management department which monitors the quality of the work of employees, the working atmosphere, etc. It is significant to most of the employees as it constitutes a major share of their income "Pay" in one form or another is certainly one of the main springs of motivations in our society 'Salary provides more than a means of satisfying the physical need it provides recognition, a small of accomplishment.Discrimination in the working environment is seen as a serious matter, which could affect the morale of the employee as well as the quality of work provided by the worker as well. According to Becker, economic discrimination occurs when a majority group (white) discriminates against minority group (non-whites) and such discrimination reduces the minority group's income (P.Formby, 1966). Empirical evidence points to a persistent gap of approximately 40% between men's and women's average earning in the United States and to a gap of approximately 30% between the earnings of white and black(Cain, 1986). Another plausible explanation for racial differences is rooted in history of racial discrimination. Minorities have continually received less pay than their White counterparts for performing the same or similar jobs. Seidel (2000) refers to this type of inequity as within-job wage discrimination. Pay or compensation discrimination occurs when employees performing similar work do not receive similar pay. Pay discrimination also occurs when a difference in pay has an unlawful basis such as race or sex. Employees are supposed to be free from compensation discrimination based on race, color, religion, gender, age, national origin, or disability. These rights are protected by the Equal Pay Act of 1963, and Title VII of the Civil Rights Act of 1964. Yet despite all these protections, it's well documented that there are significant wage disparities between men and women, and between white people and people of color. This also means that the pay gap is worst for women of color. To prove a case of race-based wage discrimination an employee must show that an employer treats employees differently based on race, color, or national origin. Race-based wage discrimination is prohibited by Title VII of the Civil Rights Act of 1964, which makes it illegal for an employer to discriminate based on race. Race-based discrimination can be committed against an employee, or even an applicant for employment, and includes: Pay rate, Whether or not to hire an applicant, Title, Promotion, Benefits. It is illegal for an employer to make an employment decision with regard to any of these terms of employment based on race, color, or national origin. Race-based discrimination does not need to be overt. Rather, an employer may have committed race-based wage discrimination if it adopts seemingly-neutral policies that disproportionately affect people of a particular race. This page will explain pay or compensation discrimination in more detail. In this report we will discuss of the wage discrimination in Pierce University Library. Franklin Pierce is a private, non-profit, regionally-accredited University. Frank S. DiPietro, who founded the college in 1962 and served as Pierce's first president, maintained the perspective that only the small college can provide the intimate relationships between those who learn and those who teach. More than five decades later, the University remains committed to this vision. With an environment that fosters intellectual curiosity and a sense of place, the community of educators at Pierce prepares every graduate for life on the other side of a degree through a combination of personalized teaching, and experiential and applied learning, including research, internships, and co-ops. In this report , we will be explaining the case of a wage and salary discrimination that occurs between two staffs based on their race in a University in United States. The case consists of a new intake from a majority group (white) earning more salary than an existing employee from a minority group (black) though their tasks and job nature are similar.