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As American business enters the 21st century the issue of unequal pay for equal work continues.
The course of attaining the objectives of just wages for all workers by eradicating the wage disparities between men and women workers is known as pay equity. It necessitates that the unequal jobs of comparatively same value to the employer is to be given the equal wages. Pay equity is considered to be a gender independent pay process that reduced wage inequity. (Policy Statement: Pay Equity) There exist considerable wage disparities between the employed men and women of America. Taking into consideration the educational and political progress of women the advocacy of the women to be in focus by a sexist society into the dominating female occupations seems to be absurd. Irrespective of the fact that more and more female are entering the top executive ranks in America they are to confront…
"About NOW" Retrieved from http://www.now.org /organization/info.html' target='_blank' REL='NOFOLLOW'>
1001 EH Tutorial Exercise
Week No & Date:
Corrections/refinement during tutorial discussion - feedback
(Done in class)
What explanations are given by this alliance to account for the gender-wage gap? What evidence is used to support this? Is it convincing? Why or why not? You might also like to look at the submissions made to Fair Work as part of the equal remuneration case. Submissions were also made by employers and employer associations http://www.fwa.gov.au/index.cfm?pagename=remuneration&page=introduction
Gender pay gap, a concept which denotes the difference that exists between the male and female earnings when expressed as a percentage of the male earnings (OECD,2011) has presented a serious problem within the Australian employment sector. The explanations that are given by the alliance to account for the gender-wage gap are numerous. In this section, we explore these reasons, the evidence used in supporting the cases as well as whether these evidences are…
Clare, R (2007)'Are retirement savings on track?' (The Association of Superannuation Funds of Australia Limited 2007).
Kelly, S (2006)'Entering Retirement: the Financial Aspects' (Paper presented at the Communicating the Gendered Impact of Economic Policies: The Case of Women's Retirement Incomes, Perth, 12-13 December 2006).
KPMG (2009). Understanding the Economic Implications of the gender Pay gap in Australia. Available online at http://www.eowa.gov.au/Pay_Equity/Pay_Equity_Information/Gender%20Pay%20Equity%20Gap%20Report%20KPMG%20DCA%20Nov%202009.pdf Accessed on 24th April,2012
OECD (2011).LMF1.5: Gender pay gaps for full-time workers and earnings differentials by educational attainment . Available online at http://www.oecd.org/dataoecd/29/63/38752746.pdf Accessed on 24th April,2012
Zippittelli v. J.C. Penney Company Case Study
The case of Zippittelli v. J.C. Penney Company stems from a hiring dispute between the plaintiff, Joanne Zippittelli, and her employer, J.C. Penney Company. In the summer of 2004 the plaintiff worked for the defendant as a general lead clerk in the Call Service Center, and after being informed by her boss that the position of shift operations manager had become available, the plaintiff elected to apply. As one of four women applying for the promotion, each of whom held the same job title at the time, the plaintiff expected her application to be given an equal level of appraisal as her peers during the hiring process conducted by Personnel Manager James Johnson. Instead, according to the plaintiffs allegations before the United States District Court, although the plaintiff passed the interview phase of the hiring process along with two other applicants,…
Age Discrimination in Employment Act (ADEA) of 1967 (Pub. L. 90-202)
EEOC Guidance on After-Acquired Evidence, No. 195,002 (Dec. 14, 1995).
Munley, J. (2007). Pay equity; age discrimination. In D. Tworney (Ed.), Labor and Employment Law (15th ed.). New York, NY: Cengage Learning.
The other reason for higher salary is based on the performance of the employees. If the employee generates more revenue, they may be given higher compensation as a reward which will also act as an incentive for future improved performance. This is usually the case for sales department whereby the pay can be based on commission. Basing on the red-circling, higher compensation can be given to the employee i.e. specific reasons such as disability are attributed for the higher salaries. In this case the employee can be performing work which requires low pay since the higher paid work cannot be performed by the employee (Pay Equity Commission).
A merit system can be used to incorporate the productivity as a measure for pay increase. The employees who exhibit exceptional performance are rewarded. To ensure validity of this program, criteria with predetermined objectives like accuracy, efficiency and ability is used to evaluate…
Garvey, Charlotte. 2005. Philosophizing Compensation. HR Magazine, January.
Nwachukwu, Saviour. 1996. Perception of Equity in Compensation Practices: A Research Note.
Equal Opportunities International 15: 36 -- 45.
Pay Equity Commission. Guideline No. 2: Permissible Differences in Compensation. Pay Equity
From the standpoint of the labor market, the lack of equity in the public system would continue to exist until the market force becomes united and demands a better protection of its rights. For now however, when the people fear the loss of their jobs and when the market place is saturated, the public employers are not pressured to implement equity. At the level of personal evaluation and job contributions, these are only able to reveal the cases of lack of equity through a comparative analysis of contributions, evaluations and compensations of several public sector employees. Individually however, a person who is inequitably rewarded will not be able to make a difference in the system.
In the hypothetical context of a perfect compensation system, several elements would sit at the basis of its evaluation. All these elements would be constructed on complex analyses of past trends, future estimations, equity theory…
Adams, J.S., Berkowitz, L., 1976, Equity theory: toward a general theory of social interaction, Academic Press
Berman, E.M., Bowman, J.S., West, P., Van Mart, M., Human resources management in public service -- paradoxes, processes and problems, 2nd edition
Mann, G.A., 2006, a motive to serve: public service motivation in human resource management and the role of PSM in the non-profit sector, Entrepreneur, http://www.entrepreneur.com/tradejournals/article/160542365_2.html last accessed on November 9, 2010
2009, the end of pay equity for women in the federal public service, Public Service Alliance of Canada, http://psac.com/news/2009/issues/200902pseact-e.shtml last accessed on November 9, 2010
Equity, Diversity, And Accountability
One of the biggest problems facing the American educational system is equity in regards to the diverse student body, and how public schools should be made accountable for providing a quality education to all students. Bensimon, Polkinghorne, and Bauman's article "The Accountability Side of Diversity" examines the relevance and effectiveness of an accountability system that is designed to measure schools' response to diversity. The hypothesis is that such an accountability system, while difficult to design and implement, would promote equitable education for American students. This research and the article based on it are optimistic, encouraging, and should help American educational institutions pay greater attention to their treatment of minority students.
This article in large part describes the "Diversity Scorecard," a project of educational accountability experimented on several Los Angeles-area colleges. As the authors state, the Diversity Scorecard was designed not to promote diversity -- for these…
The people who opt for early retirement stop staring contribution to pension system where as they start getting the benefits of pension system. (Prieto, 1997)
The traditional unfunded social security system is facing lot of problems in the United States and other developing countries with the increasing life expectancy of the people. The cost of providing any level of service is directly linked to the percentage of people who are employed against people who have already retired and enjoying pension in a pay-as-you-go system. The problem is continuing and increasing with people's move towards early retirement which is encouraged in many countries social security system. Even in the event of retirement being stabilized, the steep increase in the ratio of the aged against that of working age is contributing to the substantial raise in the cost of pay-as-you-go system. The United States estimators, who work for social security system, forecast…
Aronson, Jay Richard; Hilley, John L; Maxwell, James Ackley. (1986) "Financing State and Local Governments" Brookings Institution Press.
Brainard, William C; Perry, George L. (1990) "Brookings Papers on Economic Activity:
Macroeconomics" Brookings Institution Press.
Campbell, John Y; Feldstein, Martin S. (2001) "Risk Aspects of Investment-Based Social
Equity in Human esource and Management
For a Human esource Department to be successful at what it does, there is a need for the management to put in place policies, regarding rewards system, motivation, job design and equity. Job design, motivation and rewards systems are geared towards increasing the productivity of the employees at the workplace. The objective of having equity in the workplace is to make sure that there is a balance between what workers put in and the wages they get out of their efforts. Equity is also about making sure that if there are conflicts, they are resolved in a fair and just manner. It is obvious that conflicts occur frequently in the workplace. Therefore, there has to be someone who is neutral and can take care of the interests of both sides. This role falls squarely on the shoulders of the guys in charge of Human…
Adams, J.S. (1965) "Inequity in Social Exchange." In L. Berkowitz (Ed.) Advances in Experimental Social Psychology. New York: Academic Press, Iss.2 p. 267-299.
Harvey, C. P. and Allard, M. J. (2012). Understanding and Managing Diversity (5th Ed.). New Jersey: Pearson Education, Inc. pp. xii -- 393.
Hatfield, E., Salmon, M., and Rapson, R. L. (2011). Equity theory and social justice. Journal of Management, Spirituality, and Religion, 8, 101-121.
Judy, R.W. and D'Amico, C. (1987). Workforce 2000 -- Work and Workers for the 21st Century, Hudson Institute.
Smith School of Business (at the University of Maryland), where she was granted an MBA (Master of Business Administration) and also the courses of the MIT Sloan School of Management, where she received a Master of Science in management.
Professionally speaking, Fiorina occupied various secretarial positions; she was also a teacher of English in Italy and a receptionist. Her fruitful career began in 1980 when she joined at&T, where after various positions, came to be the company's Senior Vice President. In 1999 she joined Hewlett-Packard as Chief Executive Officer, but was forced to leave in 2005. After her departure from HP, Fiorina engaged in personal and political actions, such as the edition of her book Tough Choices: A Memoir, or campaigning with presidential candidate John McCain (Jacoby, 2008).
Carly Fiorina possesses numerous skills which qualify her for the leader's position. First of all, she has extensive knowledge and expertise, backed…
Adams, K., 2009, McLaren Boss Retires, Classic and Performance Car, http://www.classicandperformancecar.com/news/octanenews/233620/ron_dennis.htmllast accessed on January 21, 2009
Williams, R., December 22, 2007, Why Mosley is Happy with the Season that Had Everything, the Guardian
Wolff, a., June 12, 2007, 'Better than Sex' That's how Formula One Phenomenon Lewis Hamilton Described Winning His First Pole, Sports Illustrated
2007, the FIA's McLaren-Monaco Statement in Full, Formula 1 Website, http://www.formula1.com/news/headlines/2007/5/6178.htmllast accessed on January 21, 2009
Pay Pal suffered a number of setbacks and challenges in bringing its IPO to market. The company was attempting to go public after the dot-com bubble had been burst, during a time when the IPO market for tech stocks -- especially those that were not turning a profit -- was terrible. The debut was delayed at the last minute due to a legal challenge from a company known as CertCo, which filed a patent infringement suit. The company had received notice from the state of Louisiana saying that it would not be allowed to do business there until it received a money transmission license (Glasner, 2002). This was seen as a sign that similar challenges could impede its ability to do business in any number of jurisdictions.
The IPO was planned with a proposed sale of 5.4 million shares at a price between $12-14, to raise in the neighborhood of…
Friedman, J. (2002). PayPal jumps 55% on stock offering. Los Angeles Times. Retrieved August 12, 2011 from http://articles.latimes.com/2002/feb/16/business/fi-paypal16
Glasner, J. (2002). PayPal: IPO omen or anomaly? Wired. Retrieved August 12, 2011 from http://www.wired.com/techbiz/media/news/2002/02/50461
Patsuris, P. (2002). PayPal's IPO delayed. Forbes. Retrieved August 12, 2011 from http://www.forbes.com/2002/02/07/0207paypal.html
Wolveton, T. & Kane, M. (2002). PayPal delays IPO. CNet. Retrieved August 12, 2011 from http://news.cnet.com/PayPal-delays-IPO/2100-1017_3-830235.html
human resources. One is determining the levels of pay and benefits within the organization. Most companies are smart enough to understand the value of internal equity, since employees talk to each other, and it is difficult to discriminate internally in terms to pay, by law. Internal equity is practiced most strongly at companies that have strict policies with respect to pay scales. These are typically based on a combination of hierarchy, experience and ability. In some circles, the concept of internal pay equity specifically applies to all levels of the organization, from the CEO on down. A good example of a company that practices strong internal pay equity is Costco. Former CEO Jim Sinegal famously only made $200,000 per year and the new CEO makes less than a million, offering what is at least pay equity for a company in the United States.
Internal pay equity is important because it…
Aggarwal, R. & Samwick, A. (1999). Executive compensation, strategic competition, and relative performance evaluation: Theory and evidence. The Journal of Finance. Vol. 54 (6) 1999-2043.
Executive Press. (2014). Internal pay equity methodologies. Compensation Standards.com. Retrieved April 13, 2014 from http://www.compensationstandards.com/nonmember/files/IntPay.htm
Martocchio, J.J. (2009). Strategic compensation: A human resource management approach (5th ed.). Upper Saddle River, NJ: Pearson Education.
Equal Pay Act: Difficult but Essential to Enforce
According to the federal Bureau of Labor Statistics, in 2009, women made about 80% of what men of the same race performing the same jobs did. Historical data from the BLS (and this is consistent with other sources) demonstrate that things have improved little in terms of pay equity for women over the past half century or so (Bureau of Labor Statistics, http://data.bls.gov/cgi-bin/surveymost ). This is true despite the fact that in 1963, the Pay Equity Act became federal law in 1963. It is nearly impossible not to consider this law a failure in its effects given that so little has changed. (One might argue that things might have gotten worse for women absent this law, but this argument seems at least primarily specious.)
Congress enacted the law, which amended the Fair Labor Standards Act, for a number of reasons, including the…
AFL/CIO, "Pay Equity," retrieved 5 February 2010 from http://www.aflcio.org/issues/jobseconomy/women/equalpay/ ).
Bureau of Labor Statistics, retrieved 4 February 2010 from http://data.bls.gov/cgi -
worker knows immediately if she is denied a promotion or transfer, if she is fired or refused employment. And promotions, transfers, hirings, and firings are generally public events, known to co-workers. When an employer makes a decision of such open and definitive character, an employee can immediately seek out an explanation and evaluate it for pretext. Compensation disparities, in contrast, are often hidden from sight." (Steiger, 2007)
Steiger reports that…
Abrams, Jim (2009) House Approves Bill to Fight Wage Discrimination. Yahoo News. 9 Jan 2009. Online available at http://news.yahoo.com/s/ap/20090109/ap_on_go_co/pay_equity
Barko, N. (2000. June 19). The Other Gender Gap. (Online) Available http://www.prospect.org/archives/V11-15/barko-n.html .
Bland, T.S. (1999, July). Equal Pay Enforcement Heats Up. HR Magazine, p. 138-145.
Bland, T.S., Nail, T.N., Knox, D.P. (2000, May). OFCCP, White House push comparable worth. HR News, p. 22-24.
These figures dwarfed what other big businesses paid for discriminatory practices. These businesses included Texaco, Inc.; Shoney's, Inc., Winn-Dixie, Stores, Inc.; and CSX Transportation, Inc. Critics saw Coca-Cola's settlement as signaling a major breakthrough among big businesses as coming to terms with diversity in the workplace (King). ecause the company has been a leader in many areas, these critics regarded it as setting an example of greater openness to promotions across races of employees (King).
Settlement terms included $23.7 million as back pay; $58.7 million as compensatory damages; and $10 million as promotional achievement award fund distributed to the complainants. A remaining $20 million went to attorney's fees and $36 million to the implementation of internal program reforms. Coca-Cola would also create an external, seven-member task force to insure that the terms were complied with and to oversee the company's diversity efforts (King).
According to Social Networks. - Connections in…
Bland, T. (1999). Equal pay enforcement heats up. 4 pages. HR Magazine: Society for Human
Bronstad, a. (2001). EEOC alleges Beverley Hilton discrimination. 2 pages. Los Angeles
Business Journal: CBJ, LP
Several justifications for the continuous disparity in wages have been explained. It is obvious that women usually receive less and the central issue is to find out the cause. Men have attempted since decades to provide a justification by the help of hypothesis of various academic qualifications achieved by men or the various occupational responsibilities or vocations controlled by women as against those controlled by men. One reason is that women are featured in the remuneration gap equation, and a lot of these women belonging to a bygone period that continue to be dependent on the behavior and circumstances prevailing in the yester years. (Nash, 68)
Adversaries of uniformity in remuneration assert that preferences and not inequity is responsible for the disparity in the remuneration gap. People who are not in support of bridging the gap in remuneration between men and women think that the gap is present due to…
Acker, Joan. Doing Comparable Work: Gender, Class and Pay Equity. Philadelphia: Temple University Press, 1989.
Amott, Teresa. Caught in the Crisis: Women and the U.S. Economy Today. New York: Bantam Books, 1993.
Bellas, M.L. Disciplinary Differences in Faculty Salaries: Does Gender Bias Play a Role? Journal of Higher Education. Volume: 68; No: 3; 1997; pp: 299-321
Furchtgott-Roth, Diana; Stolba, Christine. Equal Pay for Equal Work. American enterprise. Volume: 12; No: 1; July 1999; pp: 37-42
compensation and traditional bases for pay.
Background- Mary is what you could call a perfect employee. She holds the post of a supervisor in a construction company. She has been with the construction company for over 15 years. Mary is one of the few females in the male-dominated company and also the only female supervisor. All her male colleagues joined the company at least five years after her, but got promoted ahead of her. She is the only one among them with an advanced degree. Mary is in love with her job and has no complaints about the treatment she gets. One day, after a long and rough day at work, she decided to go out with some of her colleagues for dinner. While dining with her colleagues, some of her male colleagues got into a discussion about their salaries and other job openings that offer better paychecks.…
(n.d.). DeGarmo -- Innovative talent acquisition and development solutions. Seniority vs. Performance-Based Pay Systems -- DeGarmo. Retrieved February 3, 2016, from http://www.degarmo.com/seniority-versus-performance-based-pay-systems
(n.d.). EEOC Home Page. Notice Concerning the Lilly Ledbetter Fair Pay Act of 2009. Retrieved February 3, 2016, from http://www.eeoc.gov/laws/statutes/epa_ledbetter.cfm
(2000). HR.com - The Human Resources Social Network. Importance of External Factors in Wage Determination - The Human Resources Social Network. Retrieved February 3, 2016, from http://www.hr.com/SITEFORUM?&t=/Default/gateway&i=1116423256281&application=story&active=no&ParentID=1119278025992&StoryID=1119642248468&xref=http%3A//www.bing.com/search%3Fq%3Dexternal+compensation+forces+%26form%3DPRUSEN%26pc%3DmsnHomeST%26mkt%3Den-us%26refig%3Ddd0c59e151db4075a5e5ef33af7da250%26pq%3Dexternal+compensation+forces+%26sc%3D1-29%26sp%3D-1%26qs%3Dn%26sk%3D%26cvid%3Ddd0c59e151db4075a5e5ef33af7da250
(2007). Justia U.S. Supreme Court Center. Ledbetter v. Goodyear Tire & Rubber Co: 550 U.S. 618 (2007): Justia U.S. Supreme Court Center. Retrieved February 3, 2016, from http://supreme.justia.com/cases/federal/us/550/618/
WOMEN'S IGHTS: EQUALITY IN THE WOKFOCE, EQUAL PAY
Women's ights: Equality in the Workplace, Equal Pay
Legislative background. The word "sex" is always an attention-getter, and when used in legislation, it can be polarizing. Public Law 82-352 (78 Stat. 241) was passed by Congress in 1964 as a civil rights statute. The Law made it a crime to discriminate in all aspects of employment on the basis of race and sex. epresentative Howard W. Smith (D-VA) added the word "sex" at the eleventh hour (O'Neill, 2011), reported to keep the bill from being passed. As a conservative Southerner, Smith was seen as an opponent of federal civil rights legislation. But Smith defended his action, explaining that he had amended the bill because of his work with the National Women's Party and his efforts to support Alice Paul. The effort to retain the word "sex" in the bill was led by…
About NOW, National Organization of Women. Retrieved http://www.now.org / organization/info.html
About Us, Women's International Forum. Retrieved http://www.iwf.org/
About Us, WorkLife Law. 2011. A Center of UC Hastings College of the Law. Retrieved http://www.worklifelaw.org/ProveitAgain.html
Thomas, M. 2011. Another equal pay day. Really? Ms. Foundation for Women. Retrieved http://ms.foundation.org/
If this were the case then the provisions of the Equal Pay Act might be of some assistance, although women's lower rates of payment might be explained by reference to factors such as age/work experience/seniority within the workplace or concentration in lower grades which might (but might not) be discrimination-free. Alternatively, women might be doing the same jobs as men, but doing them in female workplaces, with the effect that no comparison would be possible under the Equal Pay Act" (p. 215).
Essentially, what McColgan (1997) is implying is that there could be logical reasons for women earning fewer cents on the dollar than men, most of which have to do with women having spent less time in the workforce than men. While this logic might have applied in much of the last half of the twentieth century, our current generation has long passed the era when women were primarily…
Figart, D.M., Mutari, E. & Power, M. (2002) Living wages, Equal wages: Gender and labor market policies in the United States. New York: Routledge
Green, C. & Ferber, M. (2005, March) Do detailed work histories help to explain gender and race/ethnic wage differentials?, Review of Social Economy 63, 55-85.
Harvey C. & Allard, J.M. (2005). Understanding and managing diversity: readings, cases and exercises, 3rd Edition. Prentice Hall, New Jersey
Lengnick-Hall, M.L., Lengnick-Hall, C.A., Andrade, L.S. & Drake, B. (2009), Strategic human resource management: the evolution of the field, Human Resource Management Review,19(2),64-85.
The author of this report is asked to review a situation, both in general and in particular, as it relates to gender pay equity in Australia and how decentralization has led to a lower performance threshold as far as that goes. The questions that will be answered are what the fundamental problems are for women in the workplace as part of remuneration goes, how the author would prepare for negotiations given the state of affairs that exist and to define an interest (two of them) and the positions that will underpin them. While women have traditionally been the homemakers and second chair in the workplace over the course of history, those women that wish to be career minded should not encounter a glass ceiling and they should be paid equally.
The barriers that exist are not hard to miss. In Australia as well as around the…
ACTU. (2015, March 10). Equal pay for work of equal value - ACTU Worksite for Schools. Retrieved March 10, 2015, from http://worksite.actu.org.au/equal -
Shachar, M. (2011) Conflict Resolution Management (CRM). Text Book. Chapter 4.
Wanrooy, B. (2009). Women at Work in Australia: Bargaining a Better Position?
Access and Equity of Higher Education by the Population
Policy Analysis Memo Draft Format guidelines
Equity in higher education is a serious concern as the cost of tuition continues to increase. The cost of college tuition has increased by over 150% in the last three decades. Current financial pressure on students leads them to using student loans as a method to pay for college tuition or other strategies such as opting for two-year degrees. Higher education institutions are also facing the same economic pressure and feel forced to increase tuition fees leading to a vicious cycle of tuition fee increase. Looking at the expenditure of higher education institutions, the largest increase in expenditure over the same 30-year period has been in labor costs. The administrative costs per student enrolled has increased considerably (Ladd & Fiske, 2012). The current situation in higher education means the tuition fees are unsustainable and there…
Choudhury, S.R., & Mahajan, S. (2004). Why Subsidise Higher Education? Economic and Political Weekly, 39(18), 1781-1783. doi: 10.2307/4414955
Gilbert, C.K., & Heller, D.E. (2013). Access, Equity, and Community Colleges: The Truman Commission and Federal Higher Education Policy from 1947 to 2011. The Journal of Higher Education, 84(3), 417-443. doi: 10.2307/23486834
Ladd, H.F., & Fiske, E.B. (2012). Handbook of Research in Education Finance and Policy. London: Taylor & Francis.
Leach, L. (2013). Participation and equity in higher education: are we going back to the future? Oxford Review of Education, 39(2), 267-286. doi: 10.2307/42001824
This would help to protect those people who invest in these kinds of companies, and also help them feel safer in doing so. In addition, it would protect the people who work for these companies so they could be less concerned about whether they will lose jobs if the company were to suddenly fold up based on things like bad accounting practices and lying. That is what happened with Enron, and people who had worked at the company for years and were close to retirement suddenly found that they had no job and no pension. A tightening of SEC rules would not completely prevent this, but would go a long way toward helping protect people from unscrupulous companies.
From reviewing the literature, it would appear as though the SEC has some problems in its organization, but also that they fail to deal with a lot of the issues that are…
Choi, SJ. (2001) Promoting Issuer Choice in Securities Regulation, 41 VA. J. INT'L L. 815
Clements, J. (Sept. 11, 2002). The Stock Market Isn't as Bad as You Think. The Right Moves for Tough Times, WALL ST. J., at D1
Jacob, J., Lys, TZ, & Neale, MA. (1999) Expertise in Forecasting Performance of Security Analysts, 28 J. ACCT. & ECON. 51
Langevoort, DC. (2002) Are Judges Motivated to Create "Good" Securities Fraud Doctrine?, 51 EMORY L.J. 309, 318
pay back period" is the length of time that is required to cover the cost of an investment. I would use this in order to make a good financial decision.
The calculation that I would do is as follows:
For instance, if a project costs $100,000 and is expected to return $20,000 annually, the payback period will be $100,000 / $20,000, or, in other words, $20 per 5 years.
The better investment is the one that has the shorter pay back period.(Investopeida)
Another tool that I would use to measure the time value of money to assess long-term projects is Net present value (NPV). Businesses use it to measure the value of a time series of cash flows both incoming and outgoing. For instance, when all types of cash flows are incoming (such as bonds or coupons), and the only cash outflow is the purchase price, the NPV…
About.com Debt and Equity Financing
Benzinga. Com Understanding Stocks: The Concept of Betahttp://www.benzinga.com/general/psychology/12/01/2300328/understanding-stocks-the-concept-of-beta
Cuckke.com. Systematic risks and unsystematic risks.
Now, the last one involves the balancing competitiveness with internal alignment through the use of ranges, flat rates, and/or bands. This is very important because a company would want to know who they are competing against and what they have to offer that will be able to go against them in the marketplace. Other things mentioned in this chapter, involve chapter talks about market pay survey (Salvador & Garcia-Menendez, 2001). There are three matters to look at before using pay surveys. One of those things is figuring out which employers will need to be included in the survey because clearly, everyone does not need to be involved. The second thing is to find out which jobs are will need to be included in the survey because obviously the proper ones need to be selected. It is not really necessary to use all of them. If multiple surveys are used, how…
Altman, M. (1995). Labor market discrimination, pay inequality, and effort variability: An alternative to the neoclassical model. Eastern Economic Journal, 21(2), 157-157.
Bosompra, K., Ashikaga, T., Flynn, B.S., Worden, J.K., & Solomon, L.J. (2001). Psychosocial factors associated with the public's willingness to pay for genetic testing for cancer risk: A structural equations model. Health Education Research, 16(2), 157-157.
Buescher, B.C. (2000). ABA model rule 7.6: The ABA pleases the SEC, but does not solve pay to play. The Georgetown Journal of Legal Ethics, 14(1), 139-157.
Huang, C.L., Kan, K., & Tsu-Tan, F. (1999). Consumer willingness-to-pay for food safety in taiwan: A binary-ordinal probit model of analysis. The Journal of Consumer Affairs, 33(1), 76-91.
"(National ureau of Economic Research, 2001) Analysis of this period was conducted with data from the Panel Study of Income Dynamics and findings indicate that women "were able to more than overcome the effect of adverse shifts in overall wage structure (that is rising labor-market returns to skills and to employment in high-paying male sectors) on their relative wages by improving their qualifications relative to men. So, although on average women continue to have less labor-market experience than men, they have narrowed the gender difference in experience considerably. They also have upgraded their occupations relative to men's, as they moved out of clerical and service occupations and into professional and managerial jobs. Women also have benefited from a decrease in the "unexplained" pay gap. Such a shift may reflect an upgrading of women's unmeasured labor-market skills, a decline in labor market discrimination against women, or a shift in labor market…
Gender Pay Gap Nothing to do with Discrimination (2008) Management-Issues. 21 Oct 2008. Online available at http://www.management-issues.com/2008/10/21/research/gender-pay-gap-nothing-to-do-with-discrimination.asp
Blau, Francine D. And Kahn, Lawrence M. (2001) the Gender Pay Gap. National Bureau of Economic Research. Summer 2001. Online available at http://www.nber.org/reporter/summer01/blaukahn.html
Behind the Pay Gap Press Release (2007) AAUW. 23 Apr 2007. Online available at http://www.aauw.org/about/newsroom//pressreleases/042307_paygap.cfm
User Pays System Within the Hong Kong Social Welfare Programs
As an economically developed country with high standards of living, Hong Kong, like many developed countries in the West and the Far East, is facing an increasing problem in its traditional social welfare system. Hong Kong has a large middle-class and significant lower-class populations who need to be protected from unexpected economic problems, while the government also needs to maintain its competitiveness in the global arena. Fiscally austere policies aimed at building a business-friendly atmosphere may be good for economics overall but may leave the middle -- and the working-class insecure, while increasing government expenditures for social welfare programs may hurt the economy. In the face of this dilemma and other problems involving the economy and the welfare system, the government of Hong Kong plans to introduce and promote the "user pays" system. It is the position of this paper…
Azizi, M. (2000). The User-pays System in the Provision of Urban Infrastructure: Effectiveness and Equity of Criteria. Urban Studies (Routledge), 37(8), 1345.
Fine, M., & Chalmers, J. (2000). 'User pays' and other approaches to the funding of long-term care for older people in Australia. Ageing And Society, 20(1), 5-32.
Gargett, S. (2010). The Introduction of a Targeted User-Pays Approach to Funding High-Level Residential Aged Care in Australia: An Empirical Investigation of the Impact on Price. Health Economics, Policy And Law, 5(4), 481-508.
Wong, T., Wan, P., & Law, K. (2010). The Public's Changing Perceptions of the Condition of Social Welfare in Hong Kong: Lessons for Social Development. Social Policy & Administration, 44(5), 620-640. doi:10.1111/j.1467-9515.2010.00732.x
equity at Facebook is to use the capital asset pricing model. The formula for CAPM is as follow:
Rj = RF + ?j [RM - RF]
The first step to determining the cost of equity is to gather the different variables go into CAPM. The risk free rate is the first such variable. The risk free rate reflects the rate of return that an investor can earn on an investment that has no risk The only investments that are deemed to have no risk are Treasury securities. This is because the U.. Treasury prints money, so there is zero risk that these will not be repaid. There is risk that the payment will not have the same real value, but it will have the same nominal value as expected.
According to the U.. Treasury webpage, a one-year Treasury bond carries with it a rate of 0.13%. This is the risk…
Campbell, H. (1995). The CAPM - WWWFinance. Retrieved May 2012 from http://www.duke.edu/~charvey/Classes/ba350/riskman/riskman.htm
Investopedia.com (2012). Financial concepts: capital asset pricing model (CAPM). Retrieved May 2012 from http://www.investopedia.com/university/concepts/concepts8.asp
Yahoo! Finance. Retrieved November 18, 2013 from http://finance.yahoo.com/
On the other hand, organizations that focus on external equity enjoys the advantage of attracting and retaining highly qualified employees. Similarly, the rate of staff turnover is extremely minimal as the staffs remain aware that their organization is offering compensation packages, which are streamlined accordingly with the compensation in the market. However, insisting on the external equity bears also some disadvantages. For instance, by focusing on the prevailing market compensation, an organization whose economic state does not support such pay package ends up hurting its operations. Similarly, resentment within the top brass, such as CEO's and other managers may crop due to inequality dictated by the conditions in the market (CCH, Incorporated and Myers, 2003).
It is worth noting that a given organization may resort to choose a definite compensation plan depending on its objectives. For instance, Intel chose internal equity plan which is in accordance to its objective of…
CCH, Incorporated and Myers, D.W. (2003). 2004 U.S. Master Human Resource Guide. New York, NY: CCH Incorporated.
Armstrong, M. (2007). A Handbook of Employee Reward Management and Practice. New York, NY: Kogan Page Publishers
.....debt and equity has a number of different implications, including some significant tax implications. Debt is repaid from earnings prior to taxation, where equity payouts typically occur on an after-tax basis. This is because debt repayments take priority over the payment of dividends or even to stock buybacks or retained earnings. Debt capital is thus repaid before the company is taxed -- debt lowers taxable income. Thus, debt will also lower the total tax burden that the company faces (FindLaw, 2017).
If the company opts for equity financing, it will face a higher tax burden. The taxable income will be higher, which means that the total tax payable will also be higher. Then, the equity that flows to shareholders will do so on an after-tax basis. The shareholders of course will also pay tax on whatever flows they receive. For the corporation, even though it doesn't pay that tax, it…
Undocumented tudents Equity to in-tate Tuition:
Reducing The Barriers
There exist policy ambiguities and variations at federal, state, and institutional levels related to undocumented student access to and success in higher education and this has created problems for these students. This study investigated specific policies and procedures to provide the resources and capital to assist undocumented students as well as reviewed key elements of showing the correlation of these difficulties with ethnic identity in access and equity to higher education that would help eliminate student's frustration. The study also illustrated that there is no accountability system surrounding the success of undocumented student's postsecondary education divide significant structure. Three research questions guided the study; a) Without the fundamental requirements met how will undocumented students achieve their goal to attain a degree, and seek a rewarding career? b) Is it unjust to extradite an illegal alien who has been living a constructive…
Scott, W.R. (2004). Institutional theory: Contributing to a theoretical research program. Retrieved from http://icos.groups.si.umich.edu/Institutional%20Theory%20Oxford04.pdf
Spickard, P. (2007). Almost all aliens: Immigration, race, and colonialism in American history and identity. New York, NY: Routledge.
Taylor, E. (2009). The foundations of critical race theory in education: An introduction. In E. Taylor, D. Gillborn & G. Ladson-Billings (Eds.), Foundations of critical race theory in education (pp. 1-13). New York, NY: Routledge.
difficulty in measuring brand equity for a brand like Coca Cola. Investopedia defines brand equity as the value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. As an example, they mention Coca Cola, whose consumers are willing to spend additional money to buy Coca Cola rather than the store brand of soda (Investopedia, 2011).
One scenario when brand equity is important occurs when a company wants to expand its product line. If the brand's equity is positive, the company can increase the likelihood that customers will buy its new product by associating the new product with an existing, successful brand (Investopedia, 2011).
According to Peterson, brand equity is difficult to measure because much of it depends on consumers' opinions about and perception of a brand. Measuring Coca Cola products brand equity is also made more difficult because the company has…
Investopedia. (2011). Brand equity. Retrieved July 24, 2011 from http://www.investopedia.com/terms/b/brandequity.asp
Peterson, N. (2008). Measuring brand equity with Coca Cola products. Retrieved July 24, 2011 from http://ezinearticles.com/?Measuring-Brand-Equity-With-Coca-Cola-Products&id=1712240
Sinclair, R. (n.d.). The importance of brand equity in creating firm value. Retrieved July 24, 2011 from http://www.prophet.com/downloads/whitepapers/sinclair-brand-equity-firm-value.pdf
It means they have an equal opportunity to receive contraception, prenatal counseling and services, post-natal services for mother and child, preventative healthcare services, vaccinations, and dentistry services, from earliest childhood and through their lives into their elderly years when they require more medical services to remain healthy and active. To the extent everyone in a given community or society has the same relative access to healthcare services and to the extent those services received are of comparable quality, healthcare access could be described as being equitable. On the other hand, to the extent everyone in a given community or society does not have the same relative access to healthcare services and to the extent those services received are not of comparable quality, healthcare access could be describes as being inequitable (Kennedy, 2006; eid, 2009).
Healthcare Equity in the Contemporary United States
Unfortunately healthcare access in the U.S. is not equitable…
Kennedy, E. (2006). America: Back on Track. Viking Press: New York.
Reid T. (2009). The Healing of America: A Global Quest for Better, Cheaper, and Fairer
Health Care. New York: Penguin Books.
Justice and Social Equity
Income inequality is growing at a precipitous rate in America. The cry for justice for the 99% reflects the notion that America is increasingly being dominated by wealthy elites, and the wealthy can use their greater economic, political and social capital to sustain their advantage at the helm of American society. This is manifested in a variety of ways, including the high burden of debt carried by young people who try to better themselves by going to college and then are faced with the prospect of being beholden to that debt for most their productive working lives -- provided that they can find a job upon graduating. Fear of debt may drive the children of the middle and lower classes to cheaper colleges, thus creating even more of a concentration of wealth and power, given the social connections that can be fostered at elite…
Frederickson, H. George. (2005). The state of social equity in American public administration.
National Civic Review.
Brand Equity and Customer Purchasing Behavior
Taking into account the numerous modifications witnessed in the marketing milieu- viz. The accessibility to plethora of knowledge through various electronic devices, the emergence of modern methods of buying, the ability of the companies to use technology to target consumer more specifically, getting a feel of customer tendencies is still more difficult. Purchasing activities is the sequence of choice and actions of individuals occupied in procuring and consuming the same. An enterprise must evaluate its purchasing activities. Purchaser's responses to the marketing technique of the enterprise put an enormous influence on the achievement of the enterprise. The marketing perception highlights that an enterprise must build up a unique blend of marketing initiatives that makes the customers happy, and hence the urgency to evaluate the substance, the place, the time and the purchasing pattern of consumers and by way of addressing this, marketing personnel can…
Aaker, David A. 1996. "Measuring Brand Equity across Products and Markets" California Management Review. Volume: 16; No; 2; pp: 43-47
AMR Research Report. 2004. "POS Data: The Beginning of DDSN for Consumer Products Manufacturers" February.
Anderson, J.C; Cleveland, G; Schroeder, R. 1989. "Operations Strategy: A Literature Review" Journal of Operations Management. Volume: 8; No: 1; pp: 56-64
Baker, M. 2000. Marketing Management and Strategy" Macmillan Business.
PACTICES ELATING TO STOCKHOLDES' EQUITY
Hello. I write a project paper Accounting-302 (intermediate accounting 2). The topic Stockholder's Equity corporation. The emphasis practices,, corporations operate. For, I identify company ( - company) conduct a mini case study topic Stockholder's Equity company.
Common practices relating to stockholders' equity
Stockholders' equity is an item of the balance sheet that represents the capital that has been raised by the investors in the business in exchange for stock, referred to as paid-in capital, retained earnings, and donated capital. It represents the stake of the investors in the company and is calculated by deducting the company's total liabilities from their total assets. Accounting experts commonly refer to stockholders' equity as the book value of the company since it captures the funds that were originally invested by the investors and the additional investments that they made thereafter Lowe, 1961.
It also captures earnings that the company…
Google Inc. (2013). Consolidated balance sheets. Mountain View, CA: Google Inc.
Hunton, J.E., Libby, R., & Mazza, C.L. (2006). Financial Reporting Transparency and Earnings Management. The Accounting Review, 81(1), 135-157. doi: 10.2307/4093131
Lowe, H.D. (1961). The Classification of Corporate Stock Equities. The Accounting Review, 36(3), 425-433. doi: 10.2307/242875
Maines, L.A., & McDaniel, L.S. (2000). Effects of Comprehensive-Income Characteristics on Nonprofessional Investors' Judgments: The Role of Financial-Statement Presentation Format. The Accounting Review, 75(2), 179-207. doi: 10.2307/248644
Merit wage increases are awarded to employees for their ability to meet stated goals.
4) Because employees define their own goals and deadlines, they may not be appropriately aligned with organizational goals and employees may set them too low just so they can meet them. Equity is part of the salary increase process, but comes only after allocation of merit. This could mean that serious inequities in pay go unresolved. Employees are rebelling against the system, as evidenced by overrides of dates and resistance to entering goals.
5) Management should work more closely with employees to set goals and the notion of team goals should be incorporated into the system to foster team work. Equity should not take a back seat to merit; adjustments should be made to resolve inequities, particularly those that may be related to gender, race or age. Once employees have submitted goals, they should be frozen…
Unethical/Criminal Conduct following the Equities Market Crash 2000 to 2002
This paper is a discussion of the identification and analysis of unethical and criminal conduct following the equities market crash from 2000 to 2002. The paper begins with an Introduction to the problem in Chapter One that also contains the hypothesis for the paper, the definition of terms section, and other valuable information. This information sets up the rest of the paper and gives rise to the belief that there was a great deal of unethical and criminal conduct in this country following this event.
A review of the literature follows in Chapter Two where information available about the issue will be presented and discussed. At least 60 sources will be analyzed in order to receive a complete picture of the issue. Chapter Three will then set up the methodology for analyzing this literature and determining what, if any, decision…
Arkes, R. 1991. Costs and Benefits of Judgment Errors." Implications for Debiasing, 110 PSYCHOL. BULL. 486, 486-87
Arlen, J. 1998. The Future of Behavioral Economic Analysis of Law, 51 VAND. L. REV. 1765, 1769
Arlen, J., Spitzer, M. & Talley, E. (2002). Endowment Effects Within Corporate Agency Relationships, 31 J. LEG. STUD. 1, 31
Bainbridge, SM. (2000)Mandatory Disclosure: A Behavioral Analysis, 68 U. CINN. L. REV. 1023, 1027
Brand equity is becoming a necessity within the modern day business climate, when economic agents compete not only for market shares, but also for the best employees, the best technologies or the best resources. In this setting, brand equity provides competitive advantages and points of differences and is essential.
The creation of brand equity varies across industries, across economic agents and it depends on various elements. In other words, there are no secret recipes to creating brand equity, but Yahoo! has to devise its own strategies based on its own specifics. Some of the features which can impact the brand equity strategy would include the size of the company and its resource availability, the marketing expertise it possesses, the features of the market it addresses or the nature of the items it sells.
In terms of the items commercialized, it could be argued that brand equity is created differently at…
Tonnis, R., International branding -- an internationalization approach on the marketing level, GRIN Verlag
Nworah, U., Nigeria as a brand, Brand Channel, http://www.brandchannel.com/papers_review.asp?sp_id=604 last accessed on November 11, 2011
Brand and organizational development, Q and A Consulting, http://qandaconsulting.info/brand-organisational-development last accessed on November 11, 2011
Yahoo!: managing an online brand, http://www.scribd.com/doc/44767083/Yahoo-Managing-an-Online-Brand last accessed on November 11, 2011
Often employees also receive an end-of-year lump sum bonus that is not included in their base pay (Employee Compensation, 2010).
Perkins and Balkin can choose to do any types of compensation plans that they want to. They can have plans for different areas within the organization. For example, everyone in the company could be on an hourly compensation plan while say the sales department could be on a pay for performance plan. The key is to make sure that everyone that is within a department is on the say type of plan so that everything is kept fair and ethical.
A high performance work system has many benefits for both employees and organizations. If employees feel that they are part of a high performance system then they will be happier employees and thus more productive. There are seven steps that a company must go through in order to establish a…
Employee Compensation. (2010). Retrieved May 23, 2010, from Novelguide Web site:
Fogleman, Sarah L. (2004). Creative Compensation. Retrieved May 23, 2010, from Web site:
This literature review looks at the question of SEO return characteristics of large and small firms from several different perspectives. The goal is to determine whether small firms are more effected by the equity offering than larger firms. This section examines the overall evidence for performance issues (including financial anomalies and manager performance) and whether research indicates evidence for a rational or behavioral explanation.
A firm's success in a seasoned equity or initial public offering is determined by many factors that are seemingly disconnected, but which the research shows are interdependent. Among these are the anomalies that cannot adequately be described by rational theories of pricing. As an example, Li (2012) suggests that the cyclical nature of the economy has a far greater effect on certain types of offerings (IPOs and SEOs among them) than was previously thought. Again, the relatively unpredictable nature of firms and investors…
Abhyankar, A., & Ho, K.-Y. (2001). Is long-horizon abnormal performance after seasoned equity offerings illusory? New evidence from the UK. Retrieved from http://www.fin.ntu.edu.tw/~conference2002/proceding/3-1.pdf
Brau, J.C., Brown, R.A., Osteryoung, J.S. (2004). Do venture capitalists add value to small manufacturing firms? An empirical analysis of venture and non-venture capital-backed initial public offerings. Journal of Small Business Management, 42(1).
Brau, J.C., & Osteryoung, J.S. (2001). The determinants of successful micro-IPOs: An analysis of issues made under the small corporate offering registration (SCOR) procedure. Journal of Small Business Management, 39(3).
Brav, A., Michaely, R., Roberts, M., & Zarutskie, R. (2009). Evidence on the tradeoff between risk and return for IPO and SEO firms. Financial Management, 38(2).
This make it easier to finance firm operations by selling stock, but on the other hand the firm can be forced to pay shareholders when it needs the cash to finance its debt, invest in new projects, or simply to pay for its daily activities without going further into debt.
The final method is that of a hybrid method. Dividends are paid on a stable basis. But over the long-term, the debt-to-equity ratio is reviewed, and if the firm is regularly coming short on paying its debts and other expenses, payments to shareholders may be curtailed (How and why do companies pay dividends, 2010, Investopedia). This is the preferred method, given the added flexibility it offers the firm. Hybrid methods have the ability to ensure the firm's long-term financial health, as payments can be curtailed in times of sustained economic hardship -- but hybrid payments still offer stable returns for…
Baker, Kent H., Tarun K. Mukherjeel, Gary E. Powell (2005, Summer). Distributing excess cash:
the role of specially designated dividends. Financial Services Review.
Retrieved October 11, 2010 at http://findarticles.com/p/articles/mi_qa3743/is_200507/ai_n14685355/?tag=content;col1
How and why do companies pay dividends? (2010). Investopedia. Retrieved October 11, 2010 at http://www.investopedia.com/articles/03/011703.asp
Shuffle master is a little known equity, as evidenced by the fact that it is 95% owned by institutional investors such as pension funds and mutual funds. It is what would be considered a small cap stock, with a capitalization of a mere 500 million dollars. The company is unique in that it maintains almost no debt and maintains no long-term debt. With a beta of.659, Shuffle Master has less than half the undifferentiable risk that its market peers do, but more than the industry average of.54. Shuffle Master's P/E is higher than average at slightly more than 32. The industry average is between 25 and 26. According to the most recent income statement, 12-month trailing revenue growth totals 17%. This is exceeded by earnings growth, which at 20.9% reflects both decreasing expenses and the non-existence of interest expenses.
Shuffle Master's profit margin, at 25.82%, is quite high, as is…
Shuffle Maker, 10-Q SEC filings for Q4, 2002 and Q1, Q2, and Q2, 2003.
What Fromm was implying is that the form of education described is seen as a way of having rather than being.
Fromm wrote those words back in 1957, but it is still utterly true in that education, now more than ever, is viewed as a commodity; we are told from the time we are very small children that education is an investment. In the society we live in, there is no doubt that it is. The education we either have or don't have is a direct influence on what kind of job we get and, ultimately, what kind of life we lead. We very rarely -- if ever -- think of our education as a piece of the puzzle -- that is, as a way of being directly associated with human flourishing. By gaining the best education we can, we wouldn't be readily willing to agree that it is alienating…
Fromm, E. (1957) the Art of Loving (1995 edn.) London: Thorsons.
Zajda, Joseph., Davies, Lynn., Majhanovich, Suzanne. (2008) Comparative and Global
Pedagogies: Equity, Access and Democracy in Education (Globalisation,
Comparative Education and Policy Research). Springer; 1st edition.
Sourcing equity / ax management
Contrasting between global tax systems
National taxing has been proven to affect economic decisions made by MNEs. ypically, the settlement of taxation will take two different approaches, which are the worldwide approach and the territorial approach. he first approach will levy taxes based upon the income earned by firms that are controlled in the host country. herefore, an investor earning income internationally would find his/her income taxed by the local tax authorities. For example, a country such as the United States will tax the income earned based upon firms that are located in the U.S. whether the income is received by firms based in the United States, domestically sourced, and/or foreign sourced (Moffett, Stonehill & Eitemen, 2012). However, an issue that arises is that the taxation does not take into consideration the foreign companies that are based in the United States.
herefore, the territorial approach…
They also attract investors as they will provide a deep and liquid market, allows higher investment returns, and are a form of portfolio diversification. Therefore, an investor will profit from the international debt markets as the credit rankings of most of the borrowers are very well, and the borrowers are willing and able to pay a percentage extra for repayment (Sangiuolo & Seidman, 2008). The international debt market consists of unregulated money and capital markets although the dominant currency is the United States dollar. However, the debt securities denominated in euros have grown as the predictability, liquidity and volatility of the euro consolidates. The major forms of Eurocurrency facilities discussed are short-term bank advances (similar to term loans or fully drawn advances) and standby arrangements (source of 'back-up' fund to meet short-term cash shortfalls). They also include medium- to long-term Eurocurrency loans. International debt markets are attractive to both borrows and investors as they can benefit each member in the end. Since major Eurocurrency facilities are attractive because of the lower cost of borrowing, creating a natural hedge and the size of Eurocurrency markets (Razin & Slemrod, 2010).
4. Distinguishing the characteristics of debt instruments
The international debt market uses debt instruments to regulate borrower's repayment plans and investor's investment plans. A debt instrument is a paper or electronically signed obligation that allows the issuing party to raise funds by promising to repay the lender in accordance with the terms of a contract. The borrower will be set up on a plan in order to repay any money used whether it is a short-term or long-term. Typical debt instruments would include the following: notes, bonds, certificates, mortgages, leasing, or other agreements between a
Remuneration & ther Subjects
The authors of this report have been asked to assess a number of subjects surrounding remuneration of employees and the overall corporate/social ethics involved in the same in Australia. There are also some tangential and related subjects that will also be spoken of. In total, there are five broad-based questions. The first question speaks about risk aversion, profit/wealth maximization, wealth management, different stances that different people and personnel take vis-a-vis risk and financial reporting manipulation. The second question references the horizon problem. This second question looks at the different motivations and perspectives that different people in an investment and accounting situation might take. Managers have their axe to grind and stakeholders typically have a different one. How bonuses for investment managers figure in will also be explored. Finally, there will be a review for the fifth question that pertains to the transparency and visibility of remuneration…
One way to counter the horizon problem is through use of equity instruments as a component of executive remuneration. Equity ownership and share options encourage managers to care not only about the short-term but also about the future (Conyon & Florou 2006). If a manager has shares and share options that cannot be exercised until after a period of time post-retirement, then they will be unlikely to engage in short-term firm value destroying actions (Conyon & Florou, 2006). As previously discussed, it is often the accounting measure of earnings which drives the calculation of bonuses paid to managers. Managers can manipulate accounting information in a manner such that a company will display short-term profitability. This could be achieved directly, through a reduction in spending on research and development or indirectly through reduced depreciation as a result of lower capital expenditure (Conyon & Florou 2006). It could be argued that as a result of this, there must be a reduced reliance on accounting information to drive the calculation of bonus plans that are designed to address the horizon problem. Managers, in particular CEOs and CFOs, have the greatest ability to manipulate this information. Bonus plans based on share payments and share options then force the manager to make decisions that result in an appropriate balance of both short-term performance as well as long-term growth and viability. Conyon & Florou (2006) suggest that this may even act as a substitute, allowing for reduced monitoring of executive activity.
Question III -- Non-Salary Components
Just as with regular employees, the facets of compensation relating to non-cash compensation is a major part of how executives are paid (IRS, 2014). There are multiple purposes and reasons for why these non-cash components are included. These include the fact that it is normal industry standard to offer certain benefits (e.g. health insurance, pension, etc.) (Jakobson, 2012). Cash compensation can vary widely with an obvious example being bonuses that are tied to the market, a company's performance and so forth (Thurm, 2013). However, non-cash compensation is very similar in that it manifests in a number of different ways. One reason to make heavy use of non-cash compensation is to skirt laws that relate to cash compensation such as regulations relating to bonuses, commissions, base salary and so forth (Holmberg, 2014). However, putting the kibosh on non-cash compensation such as stock and other similar items could cause a brain-drain situation for publicly traded companies (AP, 2009). Private
Secondly, performance-related pay increases prevents inflationary tendencies since such increases are the outcomes of increased productivity. Managers and employees are benefited by performance-related pay increases in the following way: when profit or performance goes up higher earnings go to the employees. However, when the profits come down, the lowering of performance-related pay can protect employees from job losses. Moreover, there is enhanced motivation as employee can identify with the success of the business. Depending on the information-sharing habits of the management, pay variations may result in employees knowing more about fortunes and misfortunes that a business goes through. (de Silva, 1998)
Other advantages of performance-related pay include the following: it is an effective method of coping with poor performance; introducing such a reward system can help to develop a performance culture within the company; it can work as a direct incentive for employees to help reach defined job targets; an…
Armstrong, Michael. 2002. Employee reward. CIPD Publishing.
Armstrong, Michael; Murlis, Helen. 2007. Reward Management: A Handbook of Remuneration Strategy and Practice. Kogan Page.
Bee, Roland; Bee, Frances. 1997. Project management: the people challenge. McGraw-Hill Education.
Bucknall, Hugh; Wei, Zheng. 2005. Magic numbers for human resource management: basic measures to achieve-. Wiley Publications.
Gender Equity in Education
Taking the Field: Women, Men and ports (Michael a. Messner)
Chapters One, Two, Three & Five
Women and men are clearly different, in ways far beyond mere physical composition, as Men are from Mars, Women are from Venus discusses in deep detail. But, the author (Messner, 2002) of Taking the Field: Women, Men and ports also wonders: where children are from, how children "do gender," how the American Youth occer Organization (AYO) does gender, and he wonders about the cultural symbolism of the process of sports. These are valid investigative questions.
Other questions posed by Messner: is gender a "thing" that one "is" or "has" - or is it situation-constructed through one's performance on the soccer field, for example? Those questions came to mind after the author witnesses the "Barbie Girls vs. ea Monsters" soccer contest - with "boys...unwittingly constituted as an audience for the girls"…
Self-esteem is covered in Chapter Four, with plenty of statistics. In elementary school, 67% of boys said "I'm happy the way I am." But by high school, the percentage of boys agreeing to that statement dropped 21 points, to 46%. And for girls, the drop was more dramatic: 60% said they were happy about themselves in elementary, but only 37% answered "affirmatively in middle school" (p. 78), and only 29% in high school. The authors develop this theme throughout the chapter (titled, "The Self-Esteem Slide"), concluding with this: "The girl who once laid claim to the top of the slide does not go into the playground anymore...no longer is she at the peak of her world...instead she walks cautiously, wary of the traps around her."
In Chapter Eight, the boys who rose to the top of the class in elementary now pay a price, and often "land at the bottom" in high school. And since boys have learned, from their "earliest days...a destructive form of division - how to separate themselves from girls," even though they now may fall short, they are still ahead of the game because "they are not girls."
These books are certainly legitimate and interesting, and clearly authentic works of scholarship. But if one is looking for a more thorough, more balanced view of boys and girls in the classrooms of 2003, and the dynamics created by social forces outside the classroom, further research might be advantageous.
This method is popular amongst firms in cyclical industries, as it allows them to curtail dividends during down cycles and reward their investors handsomely during up cycles.
The market analyzes stocks based on their returns, of which dividends are just one components. Dividend policy is considered to be a measure of a company's financial health, and a function of its business situation. The dividend is not considered important for investors in growth stocks, who view the company's business opportunities as being lucrative enough that free cash should be reinvested rather than paid out. Conversely, high dividend stocks, known as "widows and orphans" are considered to be companies in mature industries with steady income streams. The market's view is that there is little to be gained for such companies to reinvest their earnings. ecause of this, the opportunity for capital gains is limited, and investors will require the certainty of a…
No author. (n.d.). How and Why do Companies Pay Dividends. Investopedia.com. Retrieved June 18, 2008 at http://www.investopedia.com/articles/03/011703.asp
Dividend payment information from Reuters. http://www.reuters.com/finance
Wage Equity for Women
Compensation and Gender Pay Gap
Compensation is one of the main functions of human resource management (HM), with the goals of meeting an organization's objectives, maximizing an organization's investment in a labor force, and rewarding employees for their contribution. Ideally, HM should implement a compensation policy that provides equitable and consistent treatment for all employees, thereby improving productivity, employee retention, and loyalty. The term 'procedural justice' has been used to describe this process and represents, for example, whether an employee perceives a compensation policy as equitable and fair.
Based on Taylor's (1989) analysis, the Equal Pay Act of 1963 fails to address procedural justice because it ignores jobs with 'comparable worth.' The Equal Pay Act requires equal compensation for equal work, but Taylor (1989) points out that jobs with equal value to an employer or society also deserve equivalent rates of compensation, regardless of whether comparable…
National Women's Law Center. (2013). 50 Years & Counting: The Unfinished Business of Achieving Fair Pay. Retrieved from http://www.nwlc.org/sites/default/files/pdfs/final_nwlc_equal_pay_report.pdf.
Perry, J., & Gundersen, D.E. (2011). American women and the gender pay gap: A changing demographic or the same old song. Advancing Women in Leadership, 31, 153-9.
Taylor, S.H. (1989). The case for comparable worth. Journal of Social Issues, 45(4), 23-37.
Compensation and Differences in Pay
Reasons for Differences in Pay
The reasons for pay differences include:
Good performance that warrants increased compensation - EX, GS
Organization Loyalty - GS, PE
Experience - amount of time with the organization; - EQ
Education and professional qualification level, training, and skills - EQ
Negotiation made when recruiting
Seniority in the office environment - EQ
Need for retaining employee through compensation - PE
Hard work; - EX, GS
Personal traits in commanding respects and motivating others - EQ
Acknowledgment or preferential treatment from a manager.
The difference in compensation resulting from the good performance that warrants increased compensation and hard work draw relevance from the expectancy theory. Expectancy theory argues that employees have an expectation that the effort they put in work tasks, and the performance that yields will be valued. The expectation of valuations of the outcomes influences an individual motivation…
value? exhorts the reader to pay closer attention to the drivers of value. He argues that bubbles typically occur when people in the financial community lose sight of value, and that this is something that should be guarded against. Tried and true economic principles, he argues, will always hold, and the prudent investor will never forget them.
The prompt for Koller's article is the recession of 2008-2009, which resulted in a crisis. He spends a few paragraphs explaining, in brief, how he sees the crisis as having emerged. He cites two key factors. One is that a misinterpretation of the concept of value led bankers and investors alike to consider mortgage-backed securities as safe when they weren't. The mistake about value was thinking that by securitizing mortgages, that added value. He makes the point that securitizing the mortgages did not enhance their value, and therefore these products should not have…
Ackert, L., Charupat, N., Church, B. & Deaves, R. (2002).
Bubbles in experimental asset markets: Irrational exuberance no more. Federal Reserve Bank of Atlanta. Working Paper 2002-24.
Koller, T. (2010). Why value. McKinsey on Finance. No. 35 (2010).
Pagano, M. (2012). The Modigliani-Miller theorems: A cornerstone of finance. PSL Quarterly Review. Retrieved November 22, 2013 from http://bib03.caspur.it/ojspadis/index.php/PSLQuarterlyReview/article/download/9856/9738
Iron Triangle" Of Care, Cost, And Quality
Prior to explicating the particular direction that the health care system in the United States needs to take to consistently offer high levels of health care access at reasonable costs with substantial quality, it is necessary to understand the so-called iron triangle conundrum. The typical view of health care in the U.S. is that these three important factors (cost, quality and access) inevitably produce a detrimental effect upon one another. This viewpoint propounds the notion that increasing access to health care will inevitably drive up the costs associated with it, and quite possibly produce a noxious effect on the quality of such care. Conversely, there is a popularly held belief that reducing costs for health care will lead to a definite reduction in the quality of care delivered. Essentially, the iron curtain view of these three aspects of health care maintains that any…
Farrell, J. (2012). New book presents accessible, practical guidance for avoiding national bankruptcy while improving individual well-being. www.breakingtheirontriangle.com http://breakingtheirontriangle.com/new-book-presents-accessible-practical-guidance-for-avoiding-national-bankruptcy-while-improving-individual-well-being/
Finney, M. (2013). Affordable Care Act driving some premiums up. www.abc.local.go.com Retrieved from http://abclocal.go.com/kgo/story?id=9288812
Light, D. (2012). Universal health care and the Iron Triangle myth of U.S. policy makers. www.pnhp.org. Retrieved from http://www.pnhp.org/news/2012/october/universal-health-care-and-the-iron-triangle-myth-of-us-policy-makers
McCanne, D. (2012). Aaron Carroll repeats meme of access, cost and quality. www.pnhp.org. Retrieved from http://www.pnhp.org/news/2012/october/aaron-carroll-repeats-meme-of-access-cost-and-quality
Working egulations & Conditions
The Working Tine egulations of 1998 established a variety of legal provisions impacting the working hours and rest periods of employees. egulation 12 establishes the right to an uninterrupted break of 20 minutes for a daily work period in excess of six hours. egulation 10 establishes an entitlement to a daily rest period of 11 consecutive hours for each 24 hours during which the employee works, although there are a host of exceptions to this provision. egulation 11 establishes the right of adult workers to one day off a week, averaged over a two-week period (National Archives 2012).
There are a variety of provisions, and rights, available to mothers, fathers, and adult caretakers that impact the terms and conditions of an employee's employment. Using women as an example, it is clear that there are many provisions intended to protect, and enhance, the employment conditions and opportunities…
Citizens Advice Bureau, 2012. Advice Guide: Parental Rights at Work. [online] Available at: http://www.adviceguide.org.uk/england/work_e/work_rights_at_work_e/parental_rights_at_work.htm
Directgov, 2012. Employment: Discrimination at Work. UK Government. [online] Available at: http://www.direct.gov.uk/en/employment/resolvingworkplacedisputes/discriminationatwork/index.htm
Education International. Pay Equity: Training and Awareness Raising. Pay Equity Now! Campaign. [online] Available at http://download.ei-ie.org/Docs/WebDepot/feature5%20-%20100519%20-%20training%20and%20awareness%20-%20final%20EN.pdf
The National Archives. Working Time Regulations 1998. UK Government. [online] Available at http://www.legislation.gov.uk/uksi/1998/1833/contents/made
Broadbanding: Compensation of a "Different Color"
In a 1997 survey reported by the American Federation of State, County and Municipal Employees, more than two-thirds of state government personnel managers indicated they "would like to change their state's salary and classification systems" (http://www.afscme.org/wrkplace/cbr2971.htm). They believed that their governments had far too many job titles, far too few people filling each title, and outmoded salary systems (some over two decades old). But what kind of solution would help companies win that "numbers game"?
Enter "broadbanding," the practice of structuring job classifications to have fewer "layers" than a traditional compensation system. For example, a company that starts out with eight layers compresses those layers to four broader ones, creating a new set of job classifications that grou p
similar skill sets and skilled personnel together. Overnight (or so it can seem), a company's entire compensation picture shifts, its grades change, and the "lay…
Auxillium West - The HR Manager - Broadbanding. 2001, Auxillium West. .
Broadbanding . 2002, American Federation of State, County and Municipal Employees, AFL-CIO. .
Jackson, John H., and Mathis, Robert L. Human Resouce Management. 9th Ed. South-Western Thomson Learning, 2000. pgs. 422-424.
Compensation Plan Outline
Ford Motor Company is the largest manufacturer of heavy commercial vehicles and second largest producer of automobiles in the world. Their range of vehicles comprises 70 different types that include Jaguar, Lincoln, Volvo, Mercury, Aston Martin, and Ford with presence in over 30 countries worldwide. Ford employs over 300,000 employees across the globe. In the United States itself, Ford has an employee strength nearing 100,000 employees and sales exceeding three million units (Joesph, 2003).
Compensation Plan of Ford Motor Company
Association with Ford Motor Company is a fulfilling experience for the workforce. The company offers motivation for exemplary work ethics, opportunities for individual and collective growth that translates into challenges to be met and overcome. The vast range of vehicles produced in the company provides the stimulus for development of the personnel at all levels, as does the cultural and regional diversity of the workforce itself. Ford…
Daniels Fund Ethics Initiative (2014).Ford Motor Company Manages Ethics and Social Responsibility. Retrieved from http://danielsethics.mgt.unm.edu/pdf/ford-motor-case.pdf
Ford Motor Company (2014). Notice of 2014 Annual Meeting of Shareholders and Proxy Statement. Retrieved fromhttp://corporate.ford.com/doc/457/143/ir_2014_proxy.pdf
Ford Motor Company (2011). Summary of Compensation and Benefits for Ford Motor Company. Retrieved from http://corporate.ford.com/doc/r-full-time-benefits.pdf
Joseph, B.S. (2003). Corporate ergonomics program at Ford Motor Company, Applied Ergonomics, 34, 23-28. Retrieved from http://www.sciencedirect.com/science/article/pii/S0003687002000807
organization can use to help reduce the gender wage gap, which is a complex problem in the modern labor force. The comparison begins with a discussion of the background information regarding this problem and its causes. The importance of reducing the gender wage gap in the workforce to the businesses, workers, and the overall economy is also examined. Following this analysis, the article presents negotiation and flexible work schedules as the two major ways that organizations can use to address the problem. Based on the comparison of these measures, flexible work schedules are recommended as the most appropriate strategy to help deal with the issue.
educing Gender Gap in Pay:
The achievement of stronger and sustainable growth through increasing the productivity of labor and human capital requires equal economic opportunities for men and women. In the past few years, this process has largely been affected by gender wage gap regardless…
Bassett, L 2012, 'Closing the Gender Wage Gap would Create "Huge" Economic Stimulus,
Economists Say,' The Huffington Post, viewed 5 May 2013,
Bennett, J 2012, 'How to Attack the Gender Wage Gap? Speak Up,' The New York Times,
viewed 5 May 2013,
The objective of this study is to examine fair and equitable compensation and to utilize critical thinking in discussing issues from two perspectives and those being the perspectives of both employee and employer. The writer's own concepts will be critically examined concerning compensation and benefits issues.
Defining Fair and Equitable
In order to examine the issue of fair and equitable compensation it is necessary that the words 'fair' and 'equitable' be defined. The word 'fair' is defined by the Merriam-Webster Dictionary as "agreeing with what is thought to be right or acceptable" and "pleasing to the eye or mind especially because of fresh, charming, or flawless quality." (2013, p.1) The word 'equitable' is defined by the Merriam-Webster Dictionary as "dealing fairly and equally with all concerned." (2013, p.1) Therefore, fair and equitable compensation means that the compensation offered by the employer to the employee is fair and equal…
Equitable (2014) Merriam-Webster online. Retrieved from: http://www.merriam-webster.com/dictionary/equitable?show=0&t=1390623952
Fair (2014) Merriam-Webster online. Retrieved from: http://www.merriam-webster.com/dictionary/fair
Human Resource Management: Employee Compensation Guide (2009) Curriculum Guide. Risk Management Education. Retrieved from: http://www.agrisk.umn.edu/cache/ARL01631.pdf
Romanoff, Kent; Boehm, Ken; and Benson, Edward (nd) Pay Equity: Internal and External Considerations. Retrieved from: http://theperfectpayplan.typepad.com/pay_equity_article.pdf
iordan Manufacturing: Internal and External Compensation
iordan Manufacturing: External and Internal Equity Compensation
iordan Manufacturers, being a leader in its industry, appreciates the need to meet the needs of its employees through a fair compensation policy - one that equates pay with the value of the task performed, because fair treatment boosts employee performance and morale, and is an effective employee retention technique (omanoff, Boehm & Benson, n.d.). Internal equity compensation describes an employee's compensation in relation to that of other employees at the same level within iordan Manufacturing (H Council, 2014). External equity, on the other hand, compares iordan Manufacturing's wages with those of organizations within the industry.
Employee compensation is fundamental to iordan Manufacturing, just as is stipulated in the company's compensation philosophy. iordan realizes the intensity of global competition and understands that in order to maintain its industry position and market share, it has to acquire the…
HR Council. (2014). Compensation and Benefits. HR Council. Retrieved 2 May 2014 from http://hrcouncil.ca/hr-toolkit/compensation-systems.cfm
Romanoff, K., Boehm, K., & Benson, E. (n.d.). Pay Equity: Internal and External Considerations. Pay Equity Article. Retrieved http://theperfectpayplan.typepad.com/Pay_Equity_Article.pdf
Advice is given to supervisors on how to correct poor appearance and employee misconduct. In these instances, progressive guidelines and other requirements must be taken into account the completing disciplinary actions and in resolving employee grievances and appeals. Information is given to employees to encourage a better understanding of management's goals and policies. Information is also given to employees in order to assist them in improving poor performance, on or off duty misconduct, and/or to address personal issues that influence them in the workplace. Employees are told about appropriate policies, legislation, and bargaining agreements. Employees are also directed about their complaint and appeal rights and discrimination and whistleblower safeguards (Employee elations, 2009).
Preserving a positive, productive work environment is significant for all managers. This is often accomplished by engaging in: mentoring and coaching your staff, regular feedback, including annual performance reviews, open and honest communication regarding group, unit and university…
Compensation and Benefits. (n.d.). Retrieved August 18, 2010, from Auxillium West Web site:
Employee Health and Safety. (2009). Retrieved August 19, 2010, from Small Business Notes
Web site: http://www.smallbusinessnotes.com/operating/hr/safety.html
omen in Corporate Professions
The American workforce is increasingly reflecting the changing American demographic. "Minorities" like women and people of color are occupying more management and leadership positions in the business world and corporate America. Their presence has begun to trigger changes in how companies are managed and in the broader areas of corporate culture.
However, in many ways, women in business continue to face unique problems because of their gender. This paper discusses how these difficulties continue to form barriers for women in the business world. The effects of gender stereotypes and expectations can be seen in virtually all aspects of employment -- from hiring practices to wages, from chances for advancement to retirement benefits. This paper examines how factors like unequal pay and a male-dominated corporate culture help to ensure that the American corporate world remains largely an enclave of men.
Unfair hiring and advancement practices
Antilla, Susan. Tales from the Boom Room: Women vs. Wall Street. New York: Bloomberg Press, 2002.
Baugh, S.G. "On the Persistence of Sexual Harassment." Journal of Business Ethics, 16(3): 899-908.
Book, Esther Wachs. Why the Best Man for the Job is a Woman: The unique female qualities of leadership. New York: Harper Business, 2000.
Bureau of Labor Statistics. "Statistics & Data." Women's Bureau. March 2003. Department of Labor. 6 November 2004 .
Figue 1. Demogaphic composition of the United States (2003 estimate).
Souce: Based on tabula data in Wold Factbook, 2007 (no sepaate listing is maintained fo Hispanics).
Fom a stictly pecentage pespective, it would seem that Asian-Ameicans do not epesent much of a theat at all to mainsteam Ameican society, but these mee numbes do not tell the whole stoy of couse. Fo one thing, Asian-Ameicans ae one of the most divese and fastest gowing goups in the United States today (Hong, Kim & Wolfe, 2005). Accoding to Alvaez and Kimua (2001), studies have documented time and again that, consistent with thei histoical teatment, Asian-Ameicans continue to be the tagets of acially motivated popety vandalism, vebal haassment, theft, physical assaults, and in some instances, homicide; futhemoe, othe studies have confimed that a pesistent patten diving anti-Asian violence is the peception of Asian-Ameicans as foeignes who pesent an economic, academic, social, and/o…
Due to skills and abilities
4. Based on what you know and believe, would you agree or disagree with the following statements?
Racism in America is no longer a problem for Chinese-Americans.
Racism in America is no longer a problem for women and minorities