Assignment on Pay Differentiation in Employee

Added on - 16 Sep 2019

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WAGE DIFFERENTIALS
Table of ContentsIntroduction......................................................................................................................................1Issue of Organization.......................................................................................................................1Justification......................................................................................................................................2Rights and Duties of Company........................................................................................................3Rights and Duties of Employees......................................................................................................4Recommendations............................................................................................................................5Conclusion.......................................................................................................................................6References........................................................................................................................................71
IntroductionClarity Travel Management organization deliver efficient tourism services to its customers. Itprovided travel services in the United Kingdom. Prior 2015, the organization was known as Co-operative Travel Management, but from March 2015 it is known as clarity travel management. Inthis assignment, we will study the pay differentiation issue faced by the employees of theorganization. This will give us a glimpse into the situation of the employees on the basis ofwhich we can suggest recommendations to the organization to solve the problem (Van Kerm,2013). The organization also provide conference and event services to its customers. It wasestablished in 2006 with it’s headquarter in Manchester. From 2011 the organization was run as ajoint venture between the Co-operative group and Thomas Coo. It has more than 250 staff, whichprovide management services for corporate level.Issue of OrganizationDuring 2009, the organization faces a problem of wage differentials in its organization. It waspaying a different amount to men and women on the same job profile. Due to it, the employeesof the organization felt dissatisfaction with the organization system. Wage differentials areconsidered as a most significant issue. The organization is paying less than determined by theindustry standards. Equal Pay Act of 1963 concludes that pay should be equal for everyemployee on the similar job level. But this had little influence because wage discrimination isprobably arising due to the faulty decisions of the management. The management of theorganization should pay high attention to solving the wage differential problem in itsorganization. Women are almost half of the workforce. So, these should not be any differencebetween the wages of men and women. They are the equal to men, and they have the right to2
receive the same wages which are paid to the men. The organization is paying high money tomen on the basis of their skill but with the same skills women receive fewer amounts. Womenare contributing more than 55% profits of the organization (Depalo, 2015). But still, they arebehind. As per the Equality Act 2010, it is the right of every employee to recive the equal wagesto other employees of the organization. This will able to bring large level of coordinationbetween all members. Due to differential wage problem between men and women theorganization faces a decline in its profit. The profit of the organization during 2008 was 75$billion. But due to the wage differential problem the organization faces strikes, anddissatisfaction among employees which declined its profit with 20$ billion (Currie, 2013). Now,it is the responsibility of the organization to maintain its overall pay structure. This will bringsatisfaction among employees, and they like to be the part of the organization. With the equalpay system the organization able to earn a huge profit as well as reputation in the market.JustificationWage differentials have a great social and economic significance. They are directly linked withthe allocation of the economic resources to different employees of the organization. Wagedifferential highly influences the overall growth of the organization. The organization facedwage differential due to which it lost their competitive edge in the market and not able to attractlarge customers towards its services. Wages proves as a carrot which motivates employees to puttheir high efforts in performing their tasks. In the absence of adequate wages, it spreaddissatisfaction among employees which hinders the overall success of the organization (Lee,2012). Wage differentials bring inequality among employees of the organization, due to which itis difficult for the management to establish coordination among employees. This will reduce the3
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