PDF Human Resource Management - Assignment
Added on 2021-04-24
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Leadership Management
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Running head: HUMAN RESOURCE MANAGEMENTHuman Resource ManagementName of StudentName of UniversityAuthor Note
1HUMAN RESOURCE MANAGEMENTIntroductionAmong the policies involving human resource planning, pay secrecy is considered asthe most intriguing and controversial subject. Pay secrecy has its advantages as well asdisadvantages that elude the concept of pay secrecy. Han, Bartol and Kim (2015) stated thatthe advantages and disadvantages of pay secrecy are such that it provides certain advantagesas well as disadvantages. The factors related to the pay secrecy need to be considered duringthe decision-making activities of the employees. Certain contextual factors exist that exertinfluence on every company. The essay focuses on the importance of pay scale and theadvantages and disadvantages it can have in an organisation. The intention of the managers inthe application of pay secrecy and the consequences are discussed in the essay. Theimplication of HRM is provided in the essay.DiscussionAccording to Menges et al. (2017), pay secrecy is considered as the withholding ofinformation regarding compensation and other payments that need to be provided to theemployees. The secrecy is mainly based on the pay structure that is provided in othercompanies so that insecurity or superiority over the rivals is not felt. Hence, it can be said thatthe managers apply pay secrecy in a systematic manner so that information regardingcompensation can be withheld from the employees. However, one of the common dimensionsthat are obtained from the company is the fact that it does not prohibit employees to askothers about the method of compensation and payment in the organisation. This is one of theeffective ways to obtain information regarding the manner in which compensation may beobtained in the organisation. Pay secrecy needs to be a form of a continuum in anorganisation and not focus on providing objective responses (Nyberg, Pieper & Trevor,2016).
2HUMAN RESOURCE MANAGEMENTTherefore, it is seen that the pay secrecy exists in a broader context. Absolute paysecrecy can exist once the employees have no knowledge about the compensation structure ofan organisation. The implementation of the human resource management policy exists onlyafter the managers convince employees about maintaining secrecy about the compensationreceived for the welfare of the organisation. DeNisi and Smith (2014) stated that thecompensation received by every employee needs to be kept a secret from one another. Thiscan help in preventing any type of misunderstanding within an organisation and ensure thatthe productivity of the organisation can be maintained. It has been seen that the pay secrecyexists in several forms that are depended on the type of information that has been withheld.Flexibility in the information provided in the compensation system can be provided to be theemployees by withholding certain information regarding the amounts received by employees.Information such as salary and incentives received by the employees can be kept a secretfrom the employees.Cobb (2016) stated that the managers might fabricate information regarding the payand compensation policy in an organisation so that they can prevent employees fromunderstanding the correct pay structure in the organisation. It has been seen that thecompensation in companies comprises of direct as well as indirect compensation. Theemployees in an organisation can be compensated with non-financial rewards along with therewards provided in terms of financing the employees. Compensation can be in many formssuch as salary, wage, incentives and pay raise. Apart from this, it is also said that the non-monetary compensation does not need to be a secret as these are provided to the employees inthe presence of other employees in an organisation. Hence, it needs to be seen that employeesget the required benefits that can help them to maintain a stable career in management inorganisations. Huselid and Becker (2017) is of the opinion that incentive is a type of
3HUMAN RESOURCE MANAGEMENTcompensation that depends upon the work done by the employees and it varies as peremployee performance.It has been seen that the decision to withhold the compensation structure of theemployees is the initial sacrifice that managers need to make in the application of paysecrecy. However, Trotter, Zacur and Stickney (2017) stated that the secrecy about thecompensation of the employees would not be enough to prevent them from understandingtheir roles and responsibilities in an organisation. The pay structure and the taskresponsibility of the employees indicate the position held by the employees in anorganisation. Hence, it can be said that the employees seek after the disruptive justice thatexists in an organisation. It is necessary that the managers implement compensation strategythat can be fairly distributed in the organisations. This is one way of maintaining peace in theorganisations and ensures that the value of work performed by the employees is performed ina proper manner. Hence, pay secrecy need to be shunned so that employees can be judgedbased on fair compensation in the organisations. As observed by Colbert, Yee and George (2016) pat secrecy differs in the segmentsabout whether it includes direct and indirect compensation. As established earlier the secrecyof payment includes withholding information about a particular employee as well as thepayment received by the other employees. However, this secrecy is more frequent than thatwhich provides information about the manner in which salaries are to be paid to theemployees. The calculation of the salaries includes calculation of the compensation as well asthe incentives of the people. Barrick et al. (2015) stated that a more liberal policy that can bemaintained from the pay secrecy includes information about the basic salaries of theemployees and the manner in which the information regarding compensation is withheld.Hence, it can be said that despite the defending of pay secrecy by various scholars and the
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