Organizations are not Focused on Fairness

It’s important to have labor restrictions and eliminate unfavorable wages and poor working conditions in the developed importing countries. The low labor cost in developing countries is the result of poorly

Rather, Equity, and the sense of fairness which commonly underpins motivation, is dependent on the comparison a person makes between his or her reward/investment ratio with the ratio enjoyed (or suffered) by others considered to be in a similar situation”(Balancing Employee Inputs and Outputs).

With the implementation of minimum wage and rising production costs in the United States, many companies have found themselves looking for a way to save money on production. Clothing manufacturers such as Nike have used labor forces in other countries, mainly in Asia to produce their products. These countries can offer similar quality labor for a cheaper cost on wages. The lower or non existent minimum wage laws in foreign countries allow companies like Nike to cut production costs drastically, while still being able to produce quality products. Similar trends are starting to creep into software companies. They are finding a workforce able to do similar work as the American workers, but for less pay.

4. The global economy of today has made it easier for employers to pass labor cost increases on to consumers by raising product or service prices.

Differences in the employees’ pay and compensation can be a form of discrimination depending on whether it is guided by job position, experience, and qualification of the employee or not. Occupation differentiation and differentials in earnings is not necessarily a form of employment discrimination. However, the case in ABC Corporation which had led to disparate treatment of employees in terms of payment had created a form of unintended discrimination and trying to correct it cannot raise ethical conflicts between the employees (Clarkson, Miller & Cross,). Ethics are based on the principles of doing right or wrong, god or bad in a certain situation. In this case, ABC Corporation is trying to honor its moral obligation by doing what is right-balancing the pay of its work to solve differences in their pay. This does

The debate over outsourcing in the U.S. is controversial among citizens and economists alike. There are many economists who believe that outsourcing is the next, most logical step in a free market economy (Mankiw & Swage, 2006). These economists believe that the market shifts according to supply and demand. An inherent feature of a free market economy is the free competition of goods and services where the goods and/or services go where the demand is the greatest. According to this view, there is a high demand for labor at a reduced cost and there is an almost endless supply of cheap labor overseas. An example of this would be that a call center attendant would be paid anywhere between twenty and twenty-five thousand dollars a year in compensation whereas the same worker in China would be paid approximately five thousand dollars in compensation per year (Mankiw & Swage, 2006). As anyone can see, there is a large difference between U.S. compensation and overseas compensation. These

There is a vast difference between the cigarette commercials of the 1980's and the anti-tobacco Truth ads of today. We were sold a lie, and now many have paid the price with their health and their life. Should it be the responsibility of the tobacco industry to care for these people who have life threating illnesses caused by their products? Should they also handle the burial of the individuals who die as a result of tobacco usage? In this industry, someone has to look out of the consumers that are not looking out for themselves.

According to the case we know that labor costs in china may have a big increase in the next 10 years, from 40% totally to 10% annual increase to even 40% annual increase.

To obtain the desired education degree for the human resource career field, human resource management students must learn and complete various subjects during the education program as they would need to employ various skills in their practical life. Candidates studying the Human Resource Management discipline gain an insight into courses like Employee Compensation Management, Perspectives of Management Labor welfare, and Organizational Behavior (R. Palaciso, personal interview, 18 July 2010). The Employee Compensation Management course provides an analysis of the techniques and principles used to develop and instigate direct and indirect compensation programs and reward systems that are cost-effective. This course teaches students, as human resource, to attain and draw a highly

According to Merriam-Webster, fair is defined as, “Agreeing with what is thought to be right or acceptable; Treating people in a way that does not favor some over others; Not too harsh or critical”. Equity is defined as “Fairness or justice in the way people are treated’. When developing a compensation system, it is important to incorporate both fairness and equity, meaning the structure should be a reasonable facsimile of what may be found at other companies in the performance of the same jobs. This is an external comparison of pay ranges and has an equitable comparison of one employee’s pay to another in the same or comparable

In order to properly examine organizational justice in the labor establishment and the direct and indirect influences it have on employees several articles were reviewed to examine the similarities and differences for further understanding. Interactional justice was examined through the role a leader plays in an organization and the effects that they have on their subordinates. Through this it can be positive or negative, therefore being that a leader boosts their employee’s morale by encouraging them, showing respect and treating them fairly. By negatively influencing them would be if a leader was abusive or takes advantage, does not include or listen to their subordinates. Procedural and distributive justice was also examined through fairness, stress, equality, and satisfaction. Employees just want to be treated with respect and be heard by their leaders. They want to be treated fairly and

The managers in this case are all free to take harsh and biased decisions for meeting their own personal interest (Cully 1999; Kessler 2003). Because of this, it will create negative environment and as a result employees will not be able to work efficiently. Even if the organisation is not supporting conflicts; proper management should work on creating competitive working environment with the presence of any such conflicts. If they fail, it shows that the organisation is unable to understand how to connect employee and organisation objective in an effective

Labor is one of the largest and in certain sectors the most expensive component in the production of goods. Outsourcing acknowledges the labor cost to produce a particular product is cheaper if the manufacturer were to produce the same product in-house where the cost per unit is significantly higher. Stable labor costs are important for long-term revenue projections to be relied upon by managers because they are a precursor of where a company is trending financially. It is this efficiency-in-scale that confirms the benefit of the division of labor memorialized by Adam Smith. As a result of the wage disparity between the costs of American workers versus Chinese workers, hundreds of U.S. based firms relocated all or part of their operations to China, taking advantage of the inexpensive labor market and the many cost-saving incentives offered by the Chinese government.

Adams conceptualized fairness by stating that employees determine whether they have been treated fairly at work by comparing their own payoff ratio of outcomes (such as pay or status) to inputs (such as effort or time) to the ratio of their co-workers (Adams, 1963). Thus, in the organizational framework, distributive justice refers to the perceived fairness of resource allocation in respect to the balance between employees’ contributions and rewards (Lee, 2001). Organizations convey a sense of concern for employee well-being and their contribution to organizational success when rewards and resources are fairly distributed (Peele III,

The organizational justice (OB, p. 256) is taken to extremes. Implementing the same reward through the company notwithstanding local market and standard of living, notwithstanding individual performance creates the feeling of inequity and does not encourage doing better than the average. Attempts to minimize sabotage appear to focus on treating employees fairly and honestly, by