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In this particular case, after having discussed the matter with his trusted advisors, Hank has found himself with two options to choose from, and both are on opposite ends of each other, like a magnet having two completely opposite poles (Case). But like every magnet, there is always a point where both the poles are part of one entity, the very magnet. In this case, the best option for Hank would be to find and exercise that exact point. Origination of the complex circumstances It is necessary to understand here that revelation of salary details can create unrest in the organization on more than one level.
This element originates from the fact that whether one chooses to or not, after joining an organization, one eventually and steadily becomes a part of the people who constitute the organization. Workplace relationships such as carpools and voluntary late shift replacements are commonly found examples of such workplace relationships. The bigger picture spans the families of the employees who develop friendly relationships in gatherings such as Company dinners and other gatherings of the like where the families of employees interact.
Spouses and children find similarities and become associates at most occasions such as these and this leads to communication beyond office perimeters. However, these workspace based relationships are more than often between horizontally placed employees rather than vertically placed personnel of the organization. This leads to the collapse of formalities between such employees in the workplace. After having reached this state of understanding, a degree of trust begins to build between employees.
Between horizontally placed employees, this trust reflects a sense of brotherhood, equivalence and sense of truth. Salaries however, are very rarely discussed. The larger the organization, the more is the probability that salaries will not be discussed between the employees. But when a revelation of a disparity between salaries of those employees is revealed, it can raise numerous doubts, fears and reservations amongst the employees, as was observed in the given case study.
Not only does an air of distrust begin to plague the workplace but employees also begin to become fearful for their job security from derivations of their worth to the company from the wage disparities. If an employee finds out that his salary is lesser than that being given to a horizontally placed colleague, he can infer that his work is not being appreciated and that should the organization require letting go of employees for any reason, he will be the first in his department to be let go of.
Such fears are only the tip of the iceberg in contrast to the numerous complexities that follow when salary disparities of the “Right Now! ” kind are revealed. Employee feelings and performance It is important to understand here that in cases where employee salaries are revealed and disparities are found, employee feelings get involved into the equation and the stability or instability of the state of mind that an employee harbors has direct effects upon the performance of the employee. Efficiency can suffer and employee moral can plummet.
It has been decided upon that the wage differences witnessed are there because of two factors, employee performance as reported by their superiors and the degree of talent that they are capable of developing and exercising in their respective capacities. There is however a third factor involved that was also mentioned in the early paragraphs of the case study, according to which the time period for which an employee has been with the organization is more than often consider a determinant of the employee’s capabilities and is rightfully considered to be a determinant of the degree of commitment that the employee has with the company.
Hank does not have any other option but to accept that wage disparities do exist within the framework of “Right Now! ” What he needs to do next is to build upon those wage disparities. The three factors that have been the reason for the wage disparities have already been outlined earlier and Hank should devise a wage determinant table. The concept is somewhat similar to a mathematical problem where answers to the equation are available and only part of the equation is known.
In such cases, the already known answers and partial knowledge of the equation is used to determine the entire equation. In Hank’s case, he needs to use the factors he knows influence the salaries of employees and shape them into a policy that “Right Now! ” can then use further on as well. The policy will help to explain current salary disparities as well as any salary disparities that can emerge in the days to come. An Employee Evaluation Policy of sorts. Since an employee’s salary is a quantitative element, therefore Hank will have to assign quantitative values to these factors.
For instance, Arkady will see where his performance was suffering and what factors he needs to improve on in order to obtain a salary package similar to that of Josh’s. Max will be able to understand where his performance is lacking and which factors are allowing the aggressive marketers to earn more than him. Hence, an improvement of employees will take place which can possibly lead to a development of the training division of “Right Now. While allowing “Right Now! to attain more solid grounds on which salaries can be determined at the time of employment as well as during the employee’s tenure in the organization. By doing so, Hank will be able to say that this revelation of salaries to the employees is part of a new policy “Right Now! ” has adopted for its employees. All the current employees were being judged according to this Employee Evaluation Policy and in the future all the employees of “Right Now! ” will be evaluated on the basis of this refined and finalized version of the same.
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