Salaries and incentives build the basic pillars of employee motivation and morale. Numerous management strategies engage the theory of employee compensation in the bid to improve employee output and performance. Companies that underpay employees risk high turnover rates and reduced employee morale. Therefore, managers should ensure that a proper relationship exists between salaries within their organization – this means that the salary structure should be concerned with the concept of equity. In his book, Framework for Human Resources Management, Gary Dessler states that a management’s solution to the issue of salary inequities is job evaluation. With the help of job evaluation, any form of pay inequalities can be corrected.
In Acme’s case, Black should consider calling the three supervisors into his office, discuss the situation with them, and jointly decide what to do. According to Dessler (2013), employers should strive to preserve the employer–employee relationship through staff engagement and strategic communication. Therefore, Black should hold a meeting with three frontline supervisors to discuss the relevance of restructuring of salaries. This meeting will entail acknowledging the presence of a pay equity dilemma and the discussion of proposed salary restructuring strategies. Secondly, Black should encourage senior management to engage in the decision-making process and implementation process of salary alignment. Lastly, Black should ensure that all stockholders are on the same boat by accepting thoughts and suggestions, as this action will streamline team spirit and equality.
As discussed in the previous section, the dilemma or issue of pay inequalities arises due to a lack of prior job evaluation (also known as internal alignment). On the other hand, pay inequalities arise from the lack of external alignment. As a result, I can conclude that the company got into this situation through ignorance of the both internal and external alignments. Firstly, the company did not perform job evaluation that aims at determining the relative worth of different positions within the organization (Dessler, 2013). Secondly, former President Bill George overlooked the need to express the non-monetary standards in monetary terms. Lastly, it is evident that the company’s management had preconceived notions that gave rise to gender discrimination.
The fourth alternative would suit Acme’s situation for two reasons. Firstly, it is morally correct to involve the “victims” in the solution process with the intentions to boost employee morale and avoid potential legal issues in the future. Secondly, it might be disastrous to avoid the issue or fix it without consultation. The process might require additional time and resources, but the outcome will be very satisfying in the end.