Ateneo De Davao University Jacinto St.

Davao City

Case Analysis Salary Inequalities at Acme Manufacturing

Submitted by: Regina Naciluan Chiara Carmel Sumampong 3AHRM-A

Submitted to: Carolyne Tapire HRM437 COMPENSATION ADMINISTRATION Instructor

January 30, 2012

I.

Statement of the Problem:

In ACME MANUFACTURING Company, what would be the best strategy/ strategies Joe Black will do in able to solve the problem regarding about the compensation tool being currently implemented inside the company? Sub. Problem: y How effective enough does the compensation tool to avoid sex discrimination against women workers?

II.
y

Objectives:
To find solution on how to avoid sex discrimination inside the ACME MANUFACTURING COMPANY.

To review the current strategy of the company and if there is a problem with it, Joe Black should think of alternative ways to change it for the benefit of all workers.

To be able to change the salary payroll of employees currently implemented in the Acme Manufacturing

III. Strength y

SWOT ANALYSIS Opportunities y The company has a good job evaluation system y Continuous development to the Manufacturing world of business

Structured organization & responsibilities

The Acme manufacturing had approximate 250 employees and was

the largest employer in the community

Weaknesses y y Sex discrimination Lack of communication about the matter of salary situation y y Inequity of pay structure 3 female workers were paid less than the normal compensation y Poor job evaluation

Threats y y Internal competition Internal environment/external environment y Direct cost/indirect cost

IV: Alternative Courses of Action:

ACA 1. Joe Black should call the three female supervisors into his office, and discuss the situation with them regarding to their salaries. PROS: Joe Black should call those female supervisors who were paid less than the minimum wage so for him to be able to decide what strategy he will used to avoid sex discrimination and for him to re-compensate the salaries which should be given to them properly. HE should change the current compensation tool for the benefit of all workers, especially of women workers to avoid discrimination or inequality of distribution of wage. CONS: If Joe Black will do that, some workers wont agree especially male workers, because they will think that, its a waste of time and doing that male workers may think than its not fair. They were inferior to women. Some would argue about if Joe Black will change the compensation tool, additional fund should be needed.

ACA2. Joe Black should gradually increase the female supervisors salaries. Pros: By doing it, it will remove the barrier in discriminating female workers. This would lead in equal treatment of both female and male workers, and Joe Black will never be worried or be guilty because he made a right choice in which by increasing the female workers salaries. Cons: The Company will spend additional fund for increasing the female workers wages, and making the female wage increase will take time.

ACA3. Joe Black should change the compensation tool which the company is regulating. Pros: Equal distribution of wages among male and female workers, to avoid sex discrimination. And that the company should directly focus its mission and objectives for the benefit of the company and of its employees. Cons: Time consuming and the company should re-change all the details of compensation structure.

ACA 4. Joe Black should implement the equal pay act in accordance of the law Pros: Equal payment among employees base on their respective job evaluation cluster. Con: The male supervisors would be upset and female supervisors might comprehend the total situation and want back pay. V: Recommendation I recommend that Joe Black should increase the salaries of the female workers and that he should change the compensation tool base on equal pay act of the law which the company is

currently regulating for the benefit of the female and all workers. By doing those (increase the salaries of the female workers and change the compensation tool), it will lead to a good mission and a good reputation to the company. By doing it, it will remove the barrier in discriminating female workers. This would lead in equal treatment of both female and male workers, and Joe Black will never be worried or be guilty because he made a right choice in which by increasing the female workers salaries. There is an equal distribution of wages among male and female workers, to avoid sex discrimination. And that the company should directly focus its mission and objectives for the benefit of the company and of its employees. The Acme Manufacturing should also focus on their employees as their best asset in the company.