Answer to Question #242520 in Management for sim

Question

Question For Viti Solutions to fulfill its commitment, several staff may receive higher pay rises compared to the others. Based on this scenario, critically discuss this impact on the organization’s current approach to performance management and recognition for employees who may not benefit from such pay rises? Evaluate your discussion with real or hypothetical PICs examples. 

Answer 1

Adding wages selectively would affect the organization’s management process as employees receiving low wages may be reluctant or rise to challenge the organization’s decision. This may also lead to reduced work hours, increased employee layoffs, and unemployment as a business would experience a decline in revenue due to high operation costs.