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Learning Team E
HRM/531
Salary Inequities Case Study 2
(INTRODUCTION HERE)
There is almost no absolute explanation for the difference in pay that female sales
representatives can sell more products than a man in an easier way. For example,
pharmaceutical companies tend to hire female representatives with attractive looks. They
also lower the hiring requirement for attractive representatives. However, companies will
spend more on training and reduce female representatives salaries, this may be one
violated the Executive order 11246. Failing to ensure certain female employees were paid
fairly. OFCCP lawsuit; Astra Zeneca Business Center had to routinely paid some of its
female’s Primary Care and Specialty. Level III pharmaceutical sales specialists an
average of $1700 less than man with the same positions. However, the company has been
getting away with this for a long time because of the company’s pay secrecy policies,
many women didn’t know they were getting paid less. Astra Zencea and OFCCP will
review records of the firm’s female employees in 14 states, and if they find additional
The company has a pay secrecy policy, which allows them to hide the truth from
their employees. They don’t have an established pay scale so individuals don’t know how
much they should make therefore, in relation to other individuals they didn’t ask
questions to be treated fairly. The law does not take into account factors such as length of
time in the company as well as trainings. This is caused by either a lack of trust within
the company, or they want to keep employees secrets safe. There can be many reasons
Salary Inequities Case Study 3
why their pay scale is un-established but one main reason could be that they don’t really
have a set one. This is due to years in inequality and the belief that witty woman are not
capable compared to men. The law is looking for equality and without proper records
If you what to make pay and promotions equity and without discrimination,
companies first form a board or committee with equal amounts of men and woman. This
will help eliminate the decisions being made by one male or one female because human
nature dictates that we will always be bias for one reason or another. The second thing to
help is to develop a merit-based platform for pay and promotions, which should be based
standard for hiring, salary, and promotion standards for employees to follow to eliminate
Astra Zeneca should utilize the internal, external, procedural, and individual
equity when determining the compensation plan for the business. The internal equity will
evaluate the pay of a specific position in comparison to one with similar requirements.
Through the use of the performance appraisals and any other incentive pay that a specific
position may hold this will also assist with the internal equity. The external equity the
company can use to evaluate their pay rate for a position with that of the same position
but held within a different company. Through the use of salary surveys this company
Lastly the individual equity can come into play by asking the employees specific
questions about the pay rate, and make a determination based on these specific answers to
make a decision. Overall, for a specific compensation plan Astra Zeneca should utilize
Salary Inequities Case Study 4
the equity factors to make a determination regarding compensation, this will create a
more fair determination of what the pay rate should be. The organization should have a
set salary for positions, and then potentially offer incentive programs to reward the higher
producing employees.
Broad banding pay plan collapse salary grades/classes into wide levels/bands.
Each level/band contains a wide range of jobs and pay levels. Besides having fewer
salary ranges, this structure also has larger midpoint differentials with a lesser degree of
overlap compared to the traditional pay structure. Companies that have an emphasis on
career development use this. Broad banding is imperative for companies with
competency-based pay programs, but also used by companies with longevity and
change, avoid multiple pay structures, provide greater latitude in management pay
decisions, reduce the need for precise job analysis/evaluation, and promote fewer,
Comparable worth structure suggests that employers equally pay men and women
whom perform work involving comparable skills and responsibility. That work must
provide comparable worth to the employers. This system is heavily linked to the job
evaluation. This pay structure is built to eliminate sex-segregated jobs. Broad oversight of
executive pay suggests that the board oversees the executive’s pay. This pay system
The total rewards system not only includes traditional financial rewards but also
non-financial rewards. The system provides several benefits such as, driving
guiding investment decisions for the employer while enabling informed choices for the
employment brand. Lastly to increase the return on rewards and create value of the
enterprise.
Astra Zeneca utilizes the total rewards pay system. At this company, employees
are paid out based on their experience, seniority, and tenure. For example a sales
Science.
(CONCLUSION)
Salary Inequities Case Study 6
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