Answer to Question #156394 in Management for Dini

Question

Since graduate, Ali has been working for the same employer for over three years. He liked his job and environment until a new hire, Ahmad, a fresh graduate, joined his firm a few months ago. Ahmad is in the same department and Ali has to train Ahmad. Ali found that Ahmad’s pay is only slightly lower than his. He hears that the rationale was that it has become difficult to recruit new talent unless his employer offers a competitive wage. Ali understands that but he feels that while new employees get a good deal, older employees’ pay has not been adjusted to reflect the times. 

Meanwhile, Aminah is a dedicated worker has been with the company for over two years. One day, she overheard her male colleagues complaining about their pay. Initially, Aminah thought she must be earning more than them because her dedication has earned her employee of the month awards each year. Aminah was shocked to learn that despite being a better performer, her pay has been 20% lower than her male counterpart. Aminah feels demotivated and withdrawn as she perceives this as gender discrimination.

Based on the above case, answer the following questions:

Question 1 (5 marks)

Assume you are as HR manager, what would you do for Ali and Ahmad?

Question 2 (5 marks)

How to ensure fairness and equity in pay structure?

Question 3 (5 marks)

Discuss the effects of unfairness and gender discrimination in pay structure to the employees.

Answer 1

Question 1: If I were the HR of the organization, I would advice the employer to remunerate Ali and Ahmad better to motivate them. Ali's pay should reflect his position and state at the company.

Question 2: To ensure fair and equity pay in the structure pay, I would compare employees doing same jobs and consider the tasks of the employees. Employees doing same job should earn same amount of salary and the pay should be based  on job titles.  

Question 3: Unfairness and gender inequality in pay negatively affect the performance, bottom line and workplace culture of the organization.