Chapter 17 Compensation

1. What is the nature of government’s role in compensation?

The role that government plays in compensation depends on one’s political beliefs. In the US, the government is a key stakeholder in compensation decision making. They focus mainly on pay discrimination, making sure that those who are unemployed are secure and can receive their benefits, making sure that those who are disadvantaged are making equal wages, and protecting employees from exploitation.

2. Explain why changes in minimum wage can affect higher-paid employees as well.

The effect of raising the minimum wage has different effects on the wages of workers. An increase in the minimum wage may affect the majority of American workers. Most minimum wage workers are adults. Many of those workers spend a significant portion of their early working years or their entire careers earning minimum wage or slightly above. For them, a minimum wage increase can make a significant difference in their lifetime earnings. But, there are arguments against boosting the minimum wage. These individuals maintain their belief that a hike will adversely affect other workers because employers will compensate for the extra expense.

3. What is the difference between access discrimination and valuation discrimination?

Consideration of discrimination in pay is an issue that is continually evolving, but still not fulfilling its potential. For the past 50 years, organizations have been made more aware, through legislation and pressures from civil rights groups, of the way in which they discriminate against certain groups in their Human Resource practices. But the major thrust of this pressure has been on employment practices, called access discrimination. Access discrimination involves denying particular jobs, promotions, or training opportunities to qualified women or minorities. Although no one would claim that access discrimination does not exist today, there are clear guidelines as to how organizations are to act. A...