A Report on Pay Differences

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AReport onPay Differences



AReport onPay Differences

Chrisand Pat have discovered that they are paid differently while they aredoing the same job and completing the same jobs as programmers. Thetwo individuals cannot digest why they are paid differently whichseems to be unfair. However, I am convinced that there are ten goodreasons for the difference in their salaries. Depending on one`sskills and talents there may be very genuine reasons why two peopleworking in the same department and doing the same job earndifferently. Below are the ten reasons why coworkers earn differentamounts:

  1. Level of education

  2. Skills attained

  3. Past experience

  4. Previous employer’s pay

  5. Discrimination

  6. Length of time with the current employer

  7. Difference in gender

  8. The monthly bonus given to an employee to encourage him or her

  9. Job group if any

  10. Additional responsibilities

Goingaround the group members, the following conceivable reasons wereattained:

  1. Past experience

  2. Level of education attained

  3. Discrimination

  4. Gender difference

  5. Extra responsibilities assigned to Pat

  6. Difference between Pat and Chris’ time of employment

  7. Job difficulty

  8. Difference in skills

  9. Difference in professional courses or careers

  10. Haphazard or unfair pay practices

Relevancyof the theories discussed

Basedon the above reasons, it is evident that the four theories arerelevant and support the wisdom or legality of the situation.Firstly, maybe Pat`s job require other skills. The equity theorysupports this reason because job skills are crucial inputs. On thesame hand, Pat might be having more experience than Chris thus thehigh salary. The wisdom of the reason is supported by the expectancytheory because experience defines what a person can do comfortably.Job difficulty also causes the difference in pay differences basedon the equity theory, this reason is relevant because job difficultyis a crucial output in the workplace.

Discriminationis a vice that is rampant in workplaces where salaries are paid basedon gender, race, or ethnicity. As a result, most of the resourcemanagers believe that this is not the best way to handle theemployees. Consequently, the expectancy theory questions the wisdomin the reason because the discrimination harms the progress in anorganization (Colquitt, Lepine, and Wesson, 2015). Additionally,gender difference can result into variation in payments. Thepsychological empowerment theory does not support the wisdom in thereason because gender disparity in the places of work promotesinequality. Moreover, there is a conviction that extraresponsibilities assigned to Pat may be enough reason for the paydifference. The expectancy theory supports the wisdom in the reasonbecause giving extra pay on the additional responsibilitiesencourages the employees to work extra hard and promotes employeesmotivation.

Thedifference between Pat and Chris’ time of employment can alsoresult to pay differences. The employer might have scheduled his orher payments on the basis of the time someone is employed. The wisdomof the reason is supported by the goals setting theory because a newemployee is ganged based on their performance, skills portrayed, andability to deliver on duties assigned this is based on the goals setfor individual employees.

DeConinckand Stilwell (2004) affirm that the unfair pay practices are commonin most of the workplaces where people are paid well depending on howthey are known. As a result, it can be that Pat`s is paid wellbecause is known by the management on an individual level thus beenfavored. The wisdom of the reason is questioned by the expectancytheory because favoritism hinders productivity among the employees.Also, maybe Pat has different professional courses which Chris doesnot possess. Expectancy theory would support the wisdom for thisreason because the professional courses form part of skills andexperience in a job position.

Onthe blackboard, the selected student should use the following to showthe theory applied to all the ten reasons for pay differences:

  1. Experience- EX

  2. Level of education attained-EX

  3. Discrimination- EX

  4. Gender difference-PE

  5. Extra responsibilities assigned to Pat-EX

  6. Difference between Pat and Chris’ time of employment-GS

  7. Job difficulty- EQ

  8. Difference in skills- EQ

  9. Difference in professional courses or careers-EX

  10. Haphazard or unfair pay practices-EX


Withoutthe above ten reasons for pay differences, it is extremely difficultto know and understand the basis used by the employers to come upwith the salaries amounts paid to the employees. However, it ispossible to speculate that in the current economy and job markets theemployer has the liberty to decide that he or she will not pay asmuch as they are used to the former employee(s). As a result, fromthe above ten reasons, the theories that appear to be relevantinclude the expectancy theory and the equity theory. Based on thesetwo theories the employer can determine the rates at which they wantto pay the employees. The reasons given tend to be ‘wise’.


Colquitt,J. A., Lepine, J. A., &amp Wesson, M. J. (2015). Organizationalbehavior: Improving performance and commitment in the workplace(4th ed.). New York, NY: McGraw-Hill.

DeConinck,J. B., &amp Stilwell, C. D. (2004). Incorporating organizationaljustice, role states, pay satisfaction and supervisor satisfaction ina model of turnover intentions. Journalof Business Research,57(3),225-231.

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