Full Performance Strategy Analysis

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Purpose of Assignment

The purpose of this assignment is to give learners an opportunity to apply lessons learned about performance management.

Use the same company you did in Week 2. This assignment is a spin-off of the work you did with your team. So, refer to the work you did with your team and to your text. Please refer to the resources below to assist with the assignment.

Use Attachments to complete the assignment Week two assignment is the one that says team

Assignment Steps  a 1,225-word Full Performance Strategy Analysis including:

  • Describe the overview of the performance management process.
  • Include a flowchart of the performance management process.
  • Explain the job analysis.
  • Examine the skills gap analysis and performance evaluation.
  • Determine ways to measure employee performance.
  • Assess counseling for exceptional or performance that needs improvement.
  • Attach an appendix of the resources needed to create a comprehensive performance analysis.

Format your assignment consistent with APA guidelines.

Running Head: SALARIES INEQUITIES 1

 

SALARIES INEQUITIES 6

Salaries Inequities

University of Phoenix

Possible Less Discriminatory Explanations

AstraZeneca had to settle the gender-discrimination lawsuit by paying a fine of $250,000. The U.S. Department of Labor (DOL) brought the lawsuit in May 2010 alleging that the company had discriminated against female sales agents by offering them salaries that were considerably lower than those of their male counterparts. This lawsuit was based on the provisions of the Equal Pay Act of 1963 that abolished wage disparity based on gender. Based on the provisions of the Equal Pay Act (EPA), it was possible for the company to offer less discriminatory explanations for the pay gap, and ultimately avoid the hefty fine.

The female workers won the lawsuit because it was deemed that they possessed equal skill and worked under similar working conditions. However, there are more provisions under the Equal Pay Act that could be used to offer better explanations. To begin with, AstraZeneca could have presented the explanation that there is a seniority system that could explain the gender pay gap. The act excepts equal pay where a company makes payments based on seniority (Hearing, 2010). In such settings, a company can make higher salaries to those holding senior positions regardless of their gender. If AstraZeneca use a seniority system as an explanation for the gender pay gap, they would have to prove the existence of such a system.

Another explanation that can significantly assist the company in overcoming charges of gender discrimination is that it used a system which measures earnings by the quantity or quality of production. The female employees who received lower salaries than their male counterparts worked in the sales department which commonly measures productivity of individual employees to determine wages. The Equal Pay Act exempts institutions using a system of measuring productivity to determine pay from making equal pay to all employees (Hearing, 2010). It is possible AstraZeneca to use this explanation, and avert the adverse outcomes associated with the provisions of the act. However, the Department of Labor would require evidence of this system to exempt AstraZeneca.

Making Point Legal

A point method of job evaluation consists of a set of rewarded factors used in determining the worth of jobs. With a point method of determining payment, the rewardable factors are categorized into major categories such as skill level, responsibilities, and working conditions. These categories are further defined into more detailed clusters. The aim of using a point method of job evaluation is to develop a compensation scheme that reflects the identified rewardable factors. There are a number of advantages associated with using such an approach; its useful for new jobs, and can be applied in an extensive array of jobs. This section will propose a number of ways that a point method of job evaluation can be made legally acceptable.

For the point method to be in line with the provisions of the Equal Pay Act, it has to focus in determining the skills, effort, and responsibilities of the individual employees.

Define Skills

The skill level required to complete a specified task is one of the common rewardable factor in most point method of job evaluation. Individuals with such a skill at a determined level are rewarded for it (Davar, 2012). however, those lacking such a skill are not rewarded for it. The foundations of this method of job evaluation is to identify and reward specific factors about the tasks being performed. For this to be in line with the provisions of the EPA, the rewards for individual skills have to be clearly stated. Further, the company has to accurately determine employees who possesses these skills in order to reward them. The EPA allows employers to reward employees based on their skills.

Individual Effort

Another important consideration to have is that of the effort that individual employees put in the workplace. it is possible for employees with equal ranks to perform differently because their effort input varies (Davar, 2012). The point method is set up to identify such efforts by select employees and reward them accordingly. The EPA is aware of such payment systems and authorizes their use where they can be verified. For the company, it is important to enlighten the employees on the existence of these systems, and allow for their participation in their enforcement. This would eliminate the company from any kind of violation of EPA.

Responsibilities taken on

The final approach that a company using the point method of job evaluation can use to meet the requirements of the EPA is to define the responsibilities of individual employees and the benefits associated with them. Offering benefits or increment in salary based on the responsibilities taken on is an acceptable explanation for unequal pay (Davar, 2012). Under the EPA, when the responsibilities taken on by members of different genders are similar but salaries are different, this amounts to a violation of its provisions. However, unequal responsibilities can be rewarded differently. The company has to ensure that it rewards those who perform more duties regardless of their gender.

Recommendation on Compensation Plan

There are different compensation plans that a company can use to meet its targets. Each has its advantages and disadvantages. In this case, the most appropriate compensation is a combination of a base salary plus commission.

Salary plus Commission

This is one of the most reliable types of compensation plans. Employees under such a plan receive a base salary, and additional bonuses based on their performance. In most cases, the bonus is usually tied to a budget or target that is not require the employee to make immense sacrifices. It is a common method of compensation as it favors both the employer and the employee. Employees are guaranteed to receive the base salary even during periods of slow business. For the employer, the plan is effective at motivating employees to meet the organizational objectives because of the available bonuses.

A salary plus commission compensation plan is also easily aligned with the provisions of the Equal Pay Act (Irby, 2016). According to this act, all members of an organization performing tasks requiring equal skill, effort, and responsibility are rewarded equally irrespective of their gender. This compensation plan requires an employer to set a base salary that everyone receives. Further, there is a bonus arrangement that rewards employees based on their individual performance. The commission awarded on performance is done regardless of the employee’s gender. The EPA allows for there to be a merit system that can give rise to a pay gap between employees of opposite gender (Crawford, 2011). However, the employer has to demonstrate that the merit system in place is based on individual employee performance, and that it does not favor any gender over another.

References

Crawford, J. C. (2011). Factors Influencing the Exit Intentions of Manufacturers’ Agents.

Journal of Managerial Issues, 23(4), 465-490.

Davar, S. (2012). Relationship between Job Satisfaction & Job Performance: a Meta-analysis.

Indian Journal of Industrial Relations, 48(2), 290-305.

Hearing, G. A. (2010). Recent Development in Employment Law and Litigation. Tort Trial &

Insurance Practice Law Journal, 45(2), 319-328.

Irby, C. M. (2016). Does outlawing pay secrecy increase the gender wage gap in the United

States? Monthly Labor Review.

 
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