Question

In: Operations Management

Provide an example that best illustrates either an in common or conflicting view of compensation in...

Provide an example that best illustrates either an in common or conflicting view of compensation in relation to one or more of the other groups, employees, society?

Solutions

Expert Solution

Two-tier wage system is a payroll mechanism in which one set of employees are paid lesser than the other set of employees. Basically the management has a differential compensation plan for the freshers and the lateral hires. Freshers are those employees, who are directly out of college and have no prior experience. Lateral hires are those, who are switching companies and have relevant work experience. The differential pay is based on the level of experience of the lateral hires.

The advantages of two-tier wage system are:

  • This mechanism is a way of companies to implement short term cost reduction. The freshers are paid comparatively less, thus reducing the cost incurred on the company.
  • Employee division facilitates a trigger point of performance. The new hires will try to perform their best, so that they can come in the upper tier of wage system.

The disadvantages of two-tier wage system are:

  • This mechanism poses inequality among the workforce.
  • This differential pay mechanism may provoke employee discontent

There are many advocates of this two-tier wage system who say that this mechanism acts as a trigger for the employees in lower-tier to improve their performance. Those who are against this differential compensation strategy state that this is against the policy of one wage for all and establish discrimination against the equality of the workforce.


Related Solutions

Which example BEST illustrates social insurance?
Which example BEST illustrates social insurance?food stampshousing subsidiesSocial Securityliability insurance for automobiles
Provide a scenario that illustrates an example of: A breach to confidentiality A breach to integrity...
Provide a scenario that illustrates an example of: A breach to confidentiality A breach to integrity A breach to availability
For each of the following terms, provide a brief classroom example that illustrates the term.: a....
For each of the following terms, provide a brief classroom example that illustrates the term.: a. Positive reinforcer b. Primary reinforcer c. Secondary reinforcer e. Negative reinforcement f. A variable reinforcement schedule g. An interval schedule of reinforcement Please answer with a minimum of 3 paragraphs.
Which best illustrates technology?
Which best illustrates technology?Group of answer choicesa consumer buying the latest iPhonea business using computers to make goodsa business finding a way to make goods more efficiently
describe an example that uses discrete probabilities or distributions. Provide an example that follows either the...
describe an example that uses discrete probabilities or distributions. Provide an example that follows either the binomial probabilities or any discrete probability distribution, and explain why that example follows that distribution. In your responses to other students, make up numbers for the example provided by that other student, and ask a related probability question. Then show the work (or describe the technology steps) and solve that probability example.
Provide an example of an asset and determine either it’s present or future value. For example,...
Provide an example of an asset and determine either it’s present or future value. For example, one type of asset is cash. If I have $1,000 today this is it’s present value. If I purchase a certificate of deposit from my bank for one year at an interest rate of 10% compounded annually. It’s future value would be $1,100. You can give examples of Bonds (present value at a current yield) or Stocks (present value using the Constant Growth Model)...
Provide an example that illustrates Helman’s (2007) assertion that modern medicine also constitutes “a system of...
Provide an example that illustrates Helman’s (2007) assertion that modern medicine also constitutes “a system of morality”?
1.2 Please give the example of the compensation package that you would like to provide to...
1.2 Please give the example of the compensation package that you would like to provide to Manager and Director position Manager Position Direct Financial Compensation Indirect Financial Compensation Non-Financial Compensation
provide an example of the most common type of pay in companies.
provide an example of the most common type of pay in companies.
Provide an example at work or in school where a problem was either identified late or...
Provide an example at work or in school where a problem was either identified late or ignored and created a greater problem than it should have? How could it have been handled differently? What key lessons from this course would you bring to prevent a similar reoccurence during another project?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT