Acme: Gender and Sizable Salary Increase
* Mr Joe Black an MBA and LAW degree holder has recently took over as a president of ACME Manufacturing which is family owned company and located in small eastern Arkansas. * After a short period of his joining , he find that, there was considerable inequality in the pay structure for salaried employees. * Major reason of inequality is due to sex discrimination.
Former President thinks that women doesn’t require much money and also he believes they supervised less-skilled employees than did the male supervisors. * Black hired a compensation consultant for job evolution from nearby University and study showed that HR director and 3 female supervisors were being underpaid. * Now Black was unsure what to do . IF underpaid female supervisors took the case to the EEOC office the company would be found guilty of sex discrimination and have to pay considerable back wages. And if he increase the salary of female supervisors, male supervisors would be upset , * 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 choices relative to the female supervisors: 1. To do nothing 2. To gradually increase the female supervisors’ salaries. 3. To increase their salaries immediately. 4. To call the three supervisors into his office, discuss the situation with them, and jointly decide what to do. Q. 1. What would you do if you were Black?
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ANS. IF I were Black then according to the situation and keeping the interest of the all employees, the first step would be to increase the salaries of female supervisors gradually over a period of time as raising it suddenly would upset the male supervisors because there won’t be any increase in their salary at that point of time , while not increasing female supervisors salaries would lead to legal action against the firm. Discussing the situation with them personally by calling them in the office will also show biasness towards them.
Hence, company cannot take an immediate action to increase the salary rather raise it gradually so that there are no grudges to other employees. Q. 2. How do you think the company got into a situation like this in the first place? Ans. Joe Black who is the current President of the company has took over some time back. His views were quit different from the former President Bill George . Bill George was President for 35 years and he used to determine the salaries structure on basis of individuals bargaining . There was no problem regarding hourly paid employees.
There was discrimination made on the basis of gender as well for the purpose of salary allocated. This has led to under payment to human resource director as well. The idea was that women had their working husbands and hence need not be paid equalling to males. Not only that, there were no similar supervisory jobs in which there were males and female and hence the company didn’t decide for there jobs. Job evaluation system was also missing. Q. 3. Why would you suggest Black pursue the alternative you suggested? Ans.
The alternative which Black must pursue is that of gradually increasing the pay of female employees so as to come to a just mechanism of salary of employees By gradually increasing the salaries it wouldn’t lead to an outburst of anger among other employees. The HR department would be able to plan the policies in a better way that would satisfy all. Moreover increasing the salary at once would lead to an increased cost of the organisation . Hence, company won’t have to give explanation to dissatisfaction raised by increasing salary at once and would be at better position.