Remuneration
Step one
Most organizations focus on proper employee remuneration to motivate them to work hard and provide the best services to the customers. According to Alwaki (2018), too much remuneration can lead to high losses in the company profits, loss of customers due to increase in prices and wrangles among workers who may feel that the remuneration provided is not fair as per their skills and experience. From the case study provided about the Gravity Payments, the main problem was an unequal allocation of salaries. Most of the employees felt that the addition in salary was not fair because some workers were receiving more payment compared to their skills and experience in the organization. Employees with crucial roles in the organization received lesser payment compared to those with less crucial roles. Maisey McMaster says, “He gave raises to people who have the least skills and are the least equipped to do and the ones who were taking on the most didn’t get much of a bump.” Price felt that increasing the employees’ salaries was the best way of taking care of the whole team, which he believed that they would in return take care of the clients. According to the New York Times, Price felt that the inequality in payment between his employees and his was not right. He, therefore, cut part of his employees to add employee salaries.
Step two
Various reasons prompted the emergence of the existing problem. From the case study provided, we learn that Price had conversed with Jason Haley, a phone technical who was making close to thirty-five thousand dollars per year. According to Haley, Price had no good intentions of increasing wages. Price decided to increase the wages to show how caring he is to his employees because he believes they will take care of the company clients. He also believes that increasing the pay makes the workers honest, goal-oriented and hard working. The problem arises when some workers receive lesser payment compared to the work they do (Cardias Williams, 2016). Employees that did not have enough skills received higher payment compared to those that were highly qualified, with the right skills and experience. Another problem come up because Lucas Price accused Dan Price of overpaying himself, claims that were dismissed in court because Lucas could not prove his claim that Dan had overpaid himself and inappropriately used a corporate credit card for personal expenses. According to the New York Times reporter, the judge asked Lucas had to pay Dan’s legal fees.
Step three
The main cause of the arising problem is the unequal provision of additional salaries by Dan Price to the workers. To help overcome this problem, Gravity Payment should conduct a though analysis of the employee performance to identify the most qualified employees with skills. By doing this, they will identify the works who play an important role in the organization and come up with a way of remunerating them (Upadhyaya, 2017). It will help to provide the worker who plays a major role in the productivity of the firm with a higher payment. This helps to promote equality. To achieve this, the firm can categorize the workers into various groups, basing on the quality of education, skills and experience. During remuneration, the firm owners should decide on the amount each group should earn, depending on how much they contribute to the firm’s performance.
Some of the questions asked by my classmates were; How does a massive increase in salary affect the organization? Most managers decide to increase wages to appreciate the employees for the work they do. When workers put in more efforts, productivity increases, customer loyalty rises, thus high profits. Managers can remunerate the employees in ways such as the increase in salaries- just like Dan price did, providing bonus opportunities and company-sponsored outings. Basing on the case study provided, an increased salary of the employees without considering their skills and experience leads to inequality because the most qualifies workers may not feel appreciated. Price felt that increasing the salary means taking care of employees; he, however, failed to maintain fairness because the less skilled were awarded more than what they deserved. What problems do workers encounter after receive a salary increase? Increase in salaries means working for longer hours, working with high profile and capable workers. According to the workers at the Gravity Payments, their industry is very tough, making them very driven and also face plenty of rejection. The workers are always required to operate at a hundred per cent at all times, as there is rarely a downtime (Munandar, 2015). Personal sacrifice is required to provide a high level of services and support of customers and treatments.
References
Alwaki, M. N. (2018). An Evaluation of the Impact of Remuneration on Employee Attitude and Performance in Organizations. International Journal of Academic Research in Business and Social Sciences, 8(7), 410-420.
Cardias Williams, M. D. F. (2016). Corporate Governance and Executive Remuneration in Banking (Doctoral dissertation, Prifysgol Bangor University).
Munandar, A. (2015). Why Does Employee Choose Participatory Performance Measurement?. Jurnal Dinamika Ekonomi & Bisnis, 12(2).
Upadhyaya, A. S. (2017). To study the relative importance and cruciality of emotional intelligence for the success of the organization, an empirical study of ABC Company private limited. International Journal of Management Research and Reviews, 7(4), 450.