Performance Appraisal and Compensation Analysis in the context of Gender Pay Gap

This paper provides an analysis of the Performance Appraisal and compensation system between gender salary gap and inequalities. It discusses the different reasons for the high prevalence of gender pay gap within the different firms like XYZ Company of USA. The stakeholder analysis was done to understand the issue of gender pay gap and its impact on the different stakeholders. The paper also analyzed the issue of gender pay gap from the perspective of ethical theories and concluded that paying unequal wages to men and women employees for the same work that they are performing is completely unethical and immoral.

Running head: PERFORMANCE APPRAISAL AND COMPENSATION
Performance Appraisal and Compensation Analysis in the context of Gender Pay Gap
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1.0 Introduction and Situational Analysis
1.1 Introduction
As opined by Campion et al. (2017), the intense competition that the business firms
are facing within the framework of the contemporary business world presently had shifted the
focus of the firms from the aspect of profitability to employee performance. Xu and Li (2015)
are of the viewpoint that two of the most important strategies which are being used by the
contemporary business firms for the enhancement of the employee performance are
performance appraisals and compensations. More importantly, the performance appraisals as
well as compensations which are being offered to the workers or employees should follow the
precepts of ethics as well as morals (Longenecker & Fink, 2017). However, in the majority of
the cases it is seen that the performance appraisals as well as compensations which are being
offered to the workers completely disregard the notions of ethics and morals. For example, it
is seen that they are being influenced by the concept of favouritism, personal bias, gender and
others attributes which in turn cause dissatisfaction among the employees and thereby
adversely affect the organisation (Card, Cardoso & Kline, 2015). The gender pay gap which
exists between the male and the female workers of the different business firms is not only
against the notion that the organisations need to take into effective consideration the concept
of ethics during performance appraisals and compensations but adversely affects their
performance as well. The purpose of this paper is to provide an analysis of the Performance
Appraisal and compensation system between gender salary gap and inequalities. We will
examine if these actions are unethical and immoral in the particular context of the XYZ
Company.

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1.2 Situational Analysis
1.2.1 Performance Appraisals and Compensation System
Longenecker and Fink (2017) have articulated the viewpoint that the concept of
‘performance appraisal’ can be defined as a systematic and general periodical process which
analysis or assesses the performance of the employees or workers in the context of the
performance objectives which were outlined. Performance appraisals are also being called by
the name of ‘performance review’, ‘performance evaluation’, ‘(career) development
discussions’, ‘employee appraisal’ and others (Tena, Llusar & Martín, 2016). As opined by
Vivares-Vergara, Sarache-Castro and Naranjo-Valencia (2016), the process of performance
appraisal is an important part of the career development of the employees and thus requires
the firms to regularly analyse the performance of the employees.
1.2.2 Objectives of Performance Appraisals
As argued by Chand (2013), the primary purpose of the construct of performance
appraisals is to regular monitor the performance of the employees against the set performance
objectives outlined by a firm and on the basis of this formulate different measures or
strategies for the improvement of the same. Mone and London (2018) have articulated the
viewpoint that this is important because of the fact that the overall productivity or
performance of a firm depends greatly on the individual productivity or the performance
given by the workers. Thus, it can be said that the different business firms like XYZ
Company through the use of regular monitoring practices not only try to find out the issues
that they are facing related to employee performance but at the same time devise effective
measures for the improvement of the same.

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1.2.3 Methods utilized to conduct Performance Appraisals
According to Tena, Llusar and Martín (2016), the business firms over the years have
developed various kinds of measures for the conduct of performance appraisals and also to
analyse the data collected from it keeping into perspective the diverging jobs or tasks that the
employees perform within the framework of the contemporary firms. One of the most
important means of conducting the performance appraisals is to conduct interviews with the
employees wherein they are required to explicitly state the achievements in terms of
performance that they made in the given time period (Campion et al., 2017). More
importantly, it is seen that the firms are presently taking into effective consideration both the
qualitative and the quantitative contribution made by the employees towards the overall
growth or development of the concerned firm (Mone & London, 2018). In addition to this, it
is seen that the firms also resort to the usage of different kinds of methods for the analysis of
the performance of the employees. It is pertinent to note that these reviews since they enable
the firms to analyse the performance of the workers in an objective manner and thereby offer
them the relevant feedback for improvement. In the particular context of XYZ Company, it
needs to be said that the company takes half-yearly performance appraisal interviews with the
employees to analyse their performance in the given time period. In the case of XYZ
Company, it is seen that various training programs are also being offered to the employees for
overcoming the challenges that they are facing and also for fortifying their strength points
(Xu & Li, 2015).
2.0 Stakeholder Analysis
2.1 Analysis of the gender Salary Gap Issues
Card, Cardoso and Kline (2015) have articulated the viewpoint that the evil of gender
Pay Gap is one of the most important wicked problems which is presently afflicting the
business world presently. As opined by Mihăilă, (2016), the construct of gender pay gap can

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be defined as the discrimination which is being meted out to the women in terms of the salary
or remunerations that they receive from the firms that they work because of their gender.
There are various reasons which have contributed towards the problem of gender pay gap and
its prevalence within the contemporary business world.
2.2 Common reasons for salary disparities between males and females
One of the most common reasons for the gender pay gap which exists within the
various firms is the opinion held by the people that the women are capable of performing the
same kind of work as the men are capable of performing (Blau & Kahn, 2017). This is
perhaps one of the main reasons why the women since the traditional times have been
relegated to the background of the society and even in the present times within the framework
of the different firms are rarely given different kinds of important managerial designations
(Auspurg, Hinz & Sauer, 2017). In addition to this, it is seen that the male workers generally
do not like to report to female employees and also feel when the same salary or remuneration
is being offered to the women (Wolf, 2019). Furthermore, the women often require different
kinds of additional leaves like childcare or maternity leaves, leaves to look after their family
members and others which in turn reduces their productivity and thus the organisations in
order to compensate for the same resort to the usage of the method of gender pay gap (Graf,
Brown & Patten, 2018). These in short are some of the major reasons for the high prevalence
of gender pay gap within the different firms like XYZ Company of USA.
2.3 Gender pay gap variations from different professions in the civilian sector
In 2018, it was seen that the average women employees 11.7% less wage than the
average male employees and this difference varies from profession to profession
(Pewresearch.org, 2019). For example, the average working women in the corporate receive
11 cents less per hour in comparison to the men employees of the same (Vagins, 2019). More

5PERFORMANCE APPRAISAL AND COMPENSATION
importantly, in the restaurants and bars it is seen that the women receive $7.3 less on a
weekly basis in comparison to the men employees of the same (Pewresearch.org, 2019). This
pay gap even exists within the healthcare industry and it is seen that the women working in
the healthcare clinics receive 7.1% less salary than the men employees (Jones, 2018). More
importantly, it is seen that the number of promotional opportunities which are available to the
women employees of a firm are also very limited and this holds true for the retirement age as
well since the women are forced to take retirement in their early fifties whereas the men take
retirement in their sixties (Weissmann, 2014). As a matter of fact, when the annual income of
both of the men and women in the same workplace and performing the same kind of work is
being considered it is seen that the difference in the wage between both of them is more than
$10,086 (Farber, 2017).
2.4 Department of Defense (DoD) Military Pay scales
The national government of USA in the recent times had various initiatives for
addressing the issue of gender pay gap which forms an important part of the different
workplaces of the concerned nation (EEOC, 2019). In this regard, it needs to be said that the
national government itself had revised the pay scale that the different industries of the nation
are required to pay to their employees. For example, the Department of Defense (DoD)
Military Pay scales is an important one in this context which had proposed an increase of
2.6% in the salary which are offered to the different individuals effective from 2019 (DFAS,
2019). This is often seen as one of the most important initiatives since the pay scale
completely disregards the construct of gender and as per its precepts all the working
individuals regardless of their gender are entitled to this increase in wages. Furthermore, the
Department of Defense (DoD) Military Pay scales are for the individuals who are performing
uniform services in the nation and the increase in the salary is dependent on the grade or the
designation held by the individuals regardless of their gender (DFAS, 2019). This is

6PERFORMANCE APPRAISAL AND COMPENSATION
important because of the fact that in the earlier times the women employees even within the
framework of the uniform services had to face discrimination in terms of the wages or the
designations which were being offered to them (Graf, Brown & Patten, 2018). Thus, it can be
said that the best aspect about the pay scale under discussion here is the fact that it
completely disregards the factor of gender and solely focuses on the rank or the grade of the
individuals unlike the earlier times wherein the women had to suffer because of the gender
pay gap which existed within the uniform services.
3.0 Analysis based on ethical theories
3.1 Ethics and Morals
Blau and Kahn (2017) have articulated the viewpoint that the process of gender pay
gap is not only against the concept of ethics or morals but at the same time can be seen as a
form of gender discrimination as well. As opined by Vagins (2019), gender discrimination
refers to the process through which discrimination is being meted out to the people on the
basis of their gender. More importantly, it is seen that this not only adversely affects the
individuals who are facing discrimination but at the same time hinders the fulfilment of their
basic psychosocial needs as well. Furthermore, the idea that the women are inferior to men
both physically and intellectually still forms a part of the contemporary society and this is
perhaps one of the major reasons for the gender inequality or discrimination that the women
had to face within the workplaces (Card, Cardoso & Kline, 2015). In this regard, it can be
said that the gender pay gap which still exists within the framework of the different business
firms of USA is an expression of this idea as well as the evil of gender discrimination.
Therefore, it can be said that this is not only unethical but at the same time immoral as well
since it is seen that in the majority of the workplaces regardless of their gender the
individuals are required to perform the same kind of job roles.

7PERFORMANCE APPRAISAL AND COMPENSATION
The precepts of the “Equal Pay Act of 1963” also state that the business firms are
required to pay the same amount of wages to both the men and the women employees of their
workplace if they are performing the same kind of job (Graf, Brown & Patten, 2018). In this
regard, it needs to be said that the national government of USA had established the “Equal
Employment Opportunity Commission” which seeks to monitor such instances and also
address the issue of gender pay gap (Pewresearch.org, 2019). Despite the initiatives
undertaken by the national government of USA the situation had not improved in any
substantial manner and the women still had to face the problem of gender discrimination and
gender pay gap within the workplaces of the different business firms of the nation. However,
at the same time it needs to be said that paying unequal wages to men and women employees
for the same work that they are performing is completely unethical and immoral (Shaw,
2017). On the contrary, for the effective enhancement of the performance or the productivity
of the employees the firms need to use the ‘equal work, equal pay’ for the resolution of the
problems of gender discrimination and gender pay gap within the workplaces (Card, Cardoso
& Kline, 2015).
4.0 Conclusion
To conclude, ethics and morals should dictate the different business actions or the
processes followed by a business firm however in practical situations it is seen that these
concepts are rarely being followed. One of the most important examples of this is the evil of
gender pay gap which still exists within the framework of the different USA firms. More
importantly, the evil of gender pay gap is directly related to the performance appraisals as
well as the compensations which are given to the men and the female employees of these
firms. Furthermore, the above analysis clearly indicates that the gender pay gap which exists
within the different business firms like XYZ Company of USA not only affects the
performance appraisals but also the compensations as well that are given to the employees.

8PERFORMANCE APPRAISAL AND COMPENSATION
Moreover, when analysed through the lens of different ethical theories it becomes apparent
that the construct of gender pay gap is not only unethical but at the same time immoral as
well.

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