Salary Inequities at Acme Manufacturing Essay

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Submitted By CLChong94
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Cases and Exercises

Experiential Exercise: Job Evaluations (page 429)

This exercise will give students experience in performing a job evaluation using the ranking method. When students have completed this exercise in their small groups, you should consider comparing results and discussing the similarities and differences.

Case Incident: Salary Inequities at Acme Manufacturing (page 430)

1. What would you do if you were Blankenship? This should generate lively discussion. Few students will argue for a “do nothing” approach, as the risk of legal damages is too high. Some students will argue that the discrepancies in salaries will not remain secret. If this is true, then women supervisors will discover they are underpaid and may seek additional back pay. Some students will suggest the company inform the supervisors that as a result of a recent compensation study, it was determined that these jobs were underpaid. The women in question will receive a larger raise at the time of their next performance review. Students in favor of this proposal will argue that by making it public but deferring the adjustment, they will signal that it is not a major crisis.

2. How do you think the company got into a situation like this in the first place? The informal system suggests that the local culture has overly influenced the compensation process. Issues like whether a spouse is working are not part of a professional compensation practice.

3. Why would you suggest Blankenship pursue the alternative you suggested? Students will provide a variety of reasons. Those suggesting back pay as well as a raise will argue that:
a. The company needs to maintain fairness (a social justice approach).
b. They…...

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