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Ethical Issues in Wage and Salary Administration

The document discusses several ethical issues related to wage and salary administration: 1) Paying the same wage to employees regardless of their effort or contribution. 2) Failing to provide an expected bonus when a company suffers losses. 3) Paying different wages to men and women for the same work. 4) Getting employees to sign contracts stating higher pay than what is actually received. The document also discusses employers' ethical obligations regarding workplace risks, work hours, breaks, and providing sufficient work hours. Market forces, unions, and government regulations can influence employers to offer better wages and working conditions. HR managers must navigate these complex ethical issues.

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Digvijay sinh Zala
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188 views8 pages

Ethical Issues in Wage and Salary Administration

The document discusses several ethical issues related to wage and salary administration: 1) Paying the same wage to employees regardless of their effort or contribution. 2) Failing to provide an expected bonus when a company suffers losses. 3) Paying different wages to men and women for the same work. 4) Getting employees to sign contracts stating higher pay than what is actually received. The document also discusses employers' ethical obligations regarding workplace risks, work hours, breaks, and providing sufficient work hours. Market forces, unions, and government regulations can influence employers to offer better wages and working conditions. HR managers must navigate these complex ethical issues.

Uploaded by

Digvijay sinh Zala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Ethical Issues in Wage and

Salary Administration
Wage & Salary Administration
Wage or salary paid to an employee is most important area
of concern from both - employee and employer as it is a
principal source of satisfaction of his basic needs.

Over and above livelihood for the self and family, it provides
recognition, sense of accomplishment and social status.
Wage & Salary Administration
Ethical issues with salary and wage are:

i) Paying the same remuneration to one who is sincere and


hardworking and also to one whose contribution is least.

ii) Loss suffering company expected to declare bonus.

iii) Paying different rates to men and women for same work.

iv) Getting employees to sign higher pay than actually


paying.

v) High-tech (software) companies pay employees based on


contribution / performance against set targets.
Wage & Salary Administration
• In principle, any workplace will always pose some risks, and
those risks can never be reduced to zero.

• Another question has to do with an employer’s obligation


to make sure that employees understand the risks that they
are exposed to.

• Employees working with dangerous chemicals, for example,


are generally thought to have a right to know the dangers
of those chemicals, so that they can make informed
decisions about their own safety.
Wage & Salary Administration
• A third set of concerns has to do with the length of a
workday, frequency of breaks, and the intensity of work.

• Most common worry is about workdays that are so long


that they constitute an inhumane hardship for the worker.
An 8-hour workday for example is generally considered
acceptable, but (with rare exceptions) a 12-hour day is not.

• There is also generally an expectation, as part of an


employer’s general obligation to provide humane working
conditions, that workers will receive occasional breaks,
including breaks for lunch and to use washroom.
Wage & Salary Administration
• Conversely, questions arise about an employer’s obligation
to provide enough hours of work.

• Employers have sometimes been criticized for failure to


provide full time employment (thereby possibly avoiding
having to offer benefits).

• In other cases, employers have been criticized for offering


very short shifts: expecting an employee to spend an hour
to get to work in order to work a 2-hour shift can easily be
seen as unfair.
Wage & Salary Administration
Three key forces
First, market forces have often worked in direction of
employers may offer better wages and working conditions in
order to attract workers.

Second, in some cases workers have been able to unionize in


order to increase their bargaining power and thereby
persuade employers to offer better wages and improved
working conditions.

Finally, governments in most jurisdictions have passed a


variety of regulations aimed at improving wages (minimum
wage) or working conditions (requiring employers to provide
safety equipment).
Wage & Salary Administration
These ethical issues discussed above are not exhaustive
but illustrative.

The HR manager may be dabbled in other real life situations


as well. As an employee of some organisation, he has to
apply his discretion and get out of ethical syndrome.

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