Answer three questions using text Human Resource Management Applications: Cases, Exercises, Incidents, and Skill Builders, Stella M. Nkomo, Myron D. Fottler, R. Bruce McAfee
REQUIREMENT:
Read the exercise instructions and pay particular attention to the three types of ethical categories and their definitions listed at the bottom of page 218. Your answers to each of the following dilemmas should include your decision of what action you would take and then your view of how your decision falls into one of the three ethical categories:
• Utilitarian approach
• Moral rights approach
• Justice approach
COMPENSATION DILEMMAS:
Provide responses:
Question 1: Assume that the supply of electrical technicians is low so a firm hires a group of them at $18 per hour. Two years later, due to a recession, the supply of technicians is high so the market rate for them is now $15 per hour. Should the firm pay new hires $18 or $15? Given that the firm bases pay on supply and demand, should it lower the pay of existing technicians to $15?
Question 2: Jim is given an extremely large raise because of his superb work record one year. As a result he is currently earning $55,000 whereas others at the firm holding the same job are earning $45,000. Everyone expects Jim to continue to excel and enhance the entire unit's productivity. Unfortunately, Jim's performance drops off after the first year and his performance is now just average. What should be done about his pay? Should it be reduced to reflect his current performance or should he continue to earn more than all of the others?
Question 3: Mary and Sue both work in the same department. Mary believes that Sue is being paid considerably more than she is. In fact, both employees are being paid about the same amount. Mary complains to her boss and the compensation manager and wants a pay raise. What should the compensation manager say, assuming the firm follows the policy of not revealing the pay of individual employees? Should Mary be told the amount of Sue's pay? Or should Mary only be told that there is a "misunderstanding" and that her belief is incorrect? Or should some other approach be taken?