Assignment on Wages and Compensation

Wages and
Compensation
SystemJP
2/16/2020

Introduction
Wages distribution is very challenging task in an organisation, in business economics wages
ratio is related to the balancing of the salaries paid to the higher authorities like CEO or
senio0r management and to the bottom employees. Equal pay for the equal work was very
famous concept leading to make gender justice in the organisation, but when it comes to the
higher earning by the senior managers and CEO in the top most authority it kept confidential.
Salaries ratios were higher than the average salaries paid to a bottom worker hence clarity in
the payment system to the CEO was needed because it falls in the ethical dimensions of the
corporate world. This debate will represent the changes took place in the wages ratio
regulation and why this change was necessary for the organisations in the present challenging
world.
Discussion
Some European companies in the public sector has introduced the cap over the maximum
earning of the top authorities with the ratio of the wages earned by the employees, this
debate support the changes in the wages ratios and payment system to reveal the
remuneration of the senior management and CEO. Post of the CEO in an organisation is
responsible for the overall development and issues in an organisation, people holding senior
post in an organisation are very talented and quick to take attractive decision for the
management and profit of the organisation (Aguinis, Joo & Gottfredson, 2013). Hence, they
are highly paid than the others in an organisation, question in the ethical manner about the
remuneration payment to a CEO and Senior management is not related to the amount they
get, but how that amount is collected and distributed in them.
Rewards and compensation are not only monetary value given to the employees in exchange
of their services but this is related to their sentiments and emptions as well, that represent