Pay Secrecy in Human Resource Management

Running head: PAY SECRECY IN HUMAN RESOURCE MANAGEMENT
Pay Secrecy in Human Resource Management
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1PAY SECRECY IN HUMAN RESOURCE MANAGEMENT
Abstract
The primary purpose of this essay is to discuss about pay strategy as a business strategy of an
organization. The essay discusses why pay secrecy acts as a factor of the performance
strategy. The essay also delves into the effects that the pay secrecy has on the management.

2PAY SECRECY IN HUMAN RESOURCE MANAGEMENT
Human Resource Management refers to strategic approach that helps in effectively
managing the people within an organization. It helps a business in gaining competitive
advantage and it helps in maximising the performance of the employees. Pay secrecy is
indicative of common workplace policy which prohibits the employees in discussing
regarding their pay. It talks about how the managers ask the employees not to disclose the
salary (Marasi, Wall and Bennett 2018). This essay argues that pay secrecy can have a
negative impact on the performance of the employees. The essay talks about the fact that pay
secrecy can bear negative influence on the management of the organization. This essay
throws light on how pay secrecy acts as a business strategy of an organization. The essay also
discusses about why pay secrecy acts as an important factor in relation to the performance
strategy. The essay also discusses about the implication of pay secrecy on the management.
The second and the third paragraphs talks about the factor of pay secrecy. The fourth
paragraph discusses about how pay secrecy acts as a factor in relation to performance
management. The fifth and the sixth paragraph talks about the implications of pay secrecy on
that of human resource management.
Pay secrecy refers to withholding of the information from employees pertaining to
compensation of employees. It can be said that there is absolute pay secrecy in the event of
employees of company having no knowledge about the salaries of the other employees of the
company. Pay secrecy exists in various forms that is dependent on the kind of information
that is withheld. According to Fulmer and Shaw (2018), there are some companies that
provides employees all kinds of information pertaining to compensation system like the
salary rates along with the salary calculation methods but they deny information in relation to
individual amount of the salary along with the incentives of the employees. It can be stated
that on the other hand there are some companies that provide various level of the information
to employees in relation to various elements of compensation system.