Gender Pay Gap and its Impact on Organizations

Running Head: MANAGEMENT
0
Critical thinking and decision-making
5/26/2019

MANAGEMENT
1
Contents
Introduction...........................................................................................................................................2
Gender-pay gap and Impact on Organisations.......................................................................................2
Affirmative side in context to issue of gender pay-gap......................................................................3
Negative side of the issue of ‘gender pay-gap’..................................................................................4
Conclusion.............................................................................................................................................5
References.............................................................................................................................................6

MANAGEMENT
2
Introduction
The discussion in this report will discuss management concepts in reference to the
modern business organisations and the related aspect. The topic on which the discussion will
be based in this report is “Organisations should undertake action to reduce their gender pay
gap”. A common factor affects the efficiency and overall working of the organisations. In
many organisations around the world, it has been a common scenario that women or female
workers are paid less than the male workers have. A number of reasons and organisational
policies act as the major factor behind the issue of gender pay gap. Thus, the report will enlist
the positive and negative side of the topic, and the analysis will reflect upon the Australian
organisations and their leading performance.
Gender-pay gap and Impact on Organisations
The differences in the pay or remuneration to the male and female workers, in any
organisation is defined or known as gender pay gap or gender wage gap. There are other two
concepts which are related with the gender based pay or gender pay gap, i.e. unadjusted pay
gap and adjusted pay gap. In context to the latter, it has been analysed that the person who
takes maternity leave, for an example in the case of women, then they will be paid less than
other people in the organisation. For an instance, in United States it has been observed that
the unadjusted average salary or pay to the female workers has been found to be 78% of the
pay to the male workers. The reasons or causes behind the practice of unequal or
differentiated pay to both male and female workers may be an individual’s own choice, and
the other internal and external factors of the organisation. Examples, based on three factors or
parameters are mentioned below (Schofield-Georgeson, 2018).
An individual’s, employee’s own choice, or voluntary choice may include the
willingness to work part-time only even if the opportunity or job is provided as full-time. In
this case, there is no role of the organisation or employer towards the reduced or low pay
between workers (Preston, 2018). On the other hand, innate or internal choice of the person
may be defined as the involuntary choice or aspect is working at a low-skill or low-pay scale
job due to lack of enough capabilities or competent as per the job. the last major cause which
is commonly found in the present day organisations include the external factor, or the
prejudiced nature of employers or managers, which creates discrimination amongst their