Case 8-A: Unequal Pay for Equal Work The new world economic order has changed th

Question

Case 8-A: Unequal Pay for Equal Work The new world economic order has changed the work en vironment for employees over the past decade. Companies ave restructured jobs and processes, resulting in thou- sands of workers being laid off. For the luckier ones who remain employed, pay levels ha several years (no raises given), or worse, pay has been cut What effect has this had on employee motivation? researcher explored that question. The study re viewed the practices of three plants of a large Midwest manufacturing organization. Not unlike many manufac- turing companies, this organization was struggling to sur- vive. In an effort to do so, the company decided, among other things, to implement pay cuts for all its employees No one expected workers to be happy about making less money. However, it was the supervisors' perception t a pay cut would cause less harm than eliminating sev- eral jobs altogether. In fact, by reducing pay levels, layoffs One - tha

Explanation / Answer

Solution:-
1.As per Maslow’ needs hierarchy, every employee has some needs which he wants to fulfill at the workplace. If the needs are not taken care of, his motivation level comes down and he becomes a passive employee.

The pay cut in the company led to non-fulfillment of the most basic need of the employees i.e. physiological need. Physiological need is concerned with the basic amenities required for sustenance. Money fulfills most of the basic needs. As the employees were not being paid adequately, they resorted to other means to get money i.e. stealing.

The organization did not reduce the amount of workload on each employee. So the employee was working for the same workload with a price cut. This had led to dissatisfaction among the employees. Every employee has some expectations from his employer. Employer needs to share his thought-process before taking hard decisions about the company. In this case, there was no involvement of the employees in such a decision, the rationale was not shared with them. Hence their level of dissatisfaction soared and they resorted to unethical ways like stealing.

2. If a company is struggling, it needs to get rid of unwanted resources and costs. This company could have taken the performance index of the employees into consideration and could have done a lay-off of the under-performing lot. This way, the company could have appreciated its good resources. The good performing employees, seeing that the company is recognizing their performance, would have got more motivated and improved their performance. This would have helped the business of the company.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.