Question

Your pay is a combination of basic wage + reward. The Commission is based on the expected return for the company and investors. You are well aware of the pay system because you have built a reputation as an aggressive financial advisor who aims to satisfy everyone at all costs.

QUESTION: Discussion and detailed review to cover the ethical considerations in this pay policy. Developing a modern organizational governance system. What recommendation will you make?

Answer 1

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Covering the ethical consideration in this pay policy- discussion and detailed review:

As per business ethics, the pay policy for any organization should be such that it satisfies at least the basic requirements and needs of employees.

Here, the pay given is a combination of basic wages and rewards. So, employees are getting at least basic requirements.

Now, along with basic requirements, pay policy should be such that employees are satisfied with the relationship between the amount of work they are doing and the consideration they are getting.

Moreover, they should be getting enough rewards for doing their work efficiently that it motivates them to work to the fullest, effectively and efficiently in order to get promotions and rewards.

Recommendations for developing a modern organizational governance system:

1. Qualified personal at top management: people and top level of management as CEO, directors and other personnel must be qualified, specialized and competent. They should be having adequate knowledge regarding what should be done and what should not be done in order to succeed and increase the growth of the organization.

2. Coordination and communication: within the governance system and whole organization, there should be an adequate amount of communication and coordination, in order to maintain the environment of peace and harmony, and to maintain the discipline of the organization.

3. Timely evaluation of performance: there should be a proper, unbiased and timely evaluation of the performance of the board of directors and other top-level managers concerned.