NEW PAY PLAN

1298 Words Apr 20th, 2015 6 Pages
1. Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Why?

Yes, by setting up a formal salary structure is being fair to the employees because the salary being paid based on the job task rather than pay the salary based on gender. When the salary structure being fair, it leads satisfaction among the employees and as a result the turnover will be at low rate. Besides, the company also can control their financial operation by doing budget allocation planning for their business operation. Moreover, the formal salary structure will make the employees clear on the amount pay for his or her job position. Thus, it can make easier to the related manager to do a process of
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Back to this case study, there is no such exceptions includes in the reason provided by the Jack as to justify why he decided to pay 20% more than woman to men workers. The reason provided by him is they are stronger and can work hard for longer hours and also they all have family to support. This justification is the one that can’t be acceptable at all if refer to the law and it also show discrimination towards the female worker. This is because, according to Equal Pay Act 1963, rather than the four exceptions as mention above, female and male workers should receive the same amount of payment if they hold the same job that are substantially equal.

In addition, this unwise decision of Jack Carter’s policy will result in many negative effects such as increase in turnover among female worker, job dissatisfaction. Besides, there will be also more arguments in order to get an equal pay rate and lastly it will lead to an unproductively result to the organization.

Question 4: Specifically, what would you suggest Jennifer do now with respect to her company’s pay plan?

For the development of the company, there are several suggestions from us to Jennifer do now with respect to her company’s pay plan. More details about the suggestion will be discussed in the following paragraph.

First, in the question 1, we had mentioned this point, setting up a formal salary structure. Based on this point, for the employees, they will feel more fair and
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