How does pay secrecy impede organisational justice? Discuss measures that employers can take to improve pay transparency.
The marking criteria expects:
A critical understanding of what pay transparency is, drawing on the concepts of procedural and distributive justice. Students may also draw on case studies e.g. BBC.
Students should consider how pay systems could improve transparency (e.g. single pay spine, clearly linked to grades; equal pay audits; job evaluation)
Students might also draw links between arguments concerning transparency and CEO pay (Collela et al 2007; Estlund, 2009; Mas, 2016; Ramachandaran, 2012) and consider the argument that individual pay is personal and confidential data and should not be revealed under data protection/GDPR. Good answers might also link this to ‘new pay’ theories (Lawler, 1990) that stress individuality and variable pay and how this could lead to organisational injustice.
Students should understand legislative approaches to pay transparency e.g. hard and soft legislation such as the outlawing of pay secrecy clauses in the Equality Act. Students could also provide examples of ‘reflexive’ legislative attempts in the UK and Italy to make the gender pay gap in organisations more transparent.
A good answer would draw on literature that points out the limitations of legislative approaches pay equality (e.g. Dickens 2007; De Simone and Rivera, 2007) and to organisational transparency by considering some examples of the unexpected behaviour that organisations might engage in to avoid revealing embarrassing data (Fung et al. 2004).
Please note that only in text citations are needed, but no list of full references at the end.
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