PAY DETERMINATION

Influence of Employee Voice on Pay Determination



Influence of Employee Voice on Pay Determination

Introduction

Pay has been remained a significant concern of the employee union and organizations. Often there is rigidness in the pay structure design from the part of organization. The new labour unions are conscious about their participation in the pay scale design, for this purpose organization shave to undertake the measures which involve the voice of employees in pay structure design and implementation. Today's HR practices focus on collaborating employees suggestions because the recent workforce demands work place equality and the procedures which are satisfactory and secure. This paper is an account of the articles related to the au determination and employee voice. These articles represent the concepts from organization and employee perspective and answer questions about the significance and implication of employee's participation in pay schemes. The purpose is to determine whether employee voice remains in best interest of the organization and how well this concept is imperative for today's management.

Article 1: Cox Annette, The Importance of Employee Participation in determining Pay System Effectiveness, International Journal of Management Review, 2000; 2(4): E3 (30 ref)

The author addresses the employee voice in pay determination through the concepts of justice theory and employee participation. A significant approach that is mentioned in this regard is the contingency theory. The author describes contingency theory in relation to employee voice and participation in the reward process. The contingency theory identifies the organizational variables that managers need to consider while designing the pay systems. Employee voice is one of these variables. The importance of the implementation process and design are greatly influenced by the employee participation. Many researches are undertaken to determine the impact of employee voice of the pay structure and design based on contingency theory. However, one of the significant factors in studying employee involvement is to draw some attention on the organizational justice in illustrating employee's perspective about unfair and unjust policies (Steward, 2005, pp.465-469). These policies make the employees determine whether the organizational practices are just. Based on these perceptions, they analyse the need for participating in a particular corporate governance area, such as pay determination.

The next section of the article focuses on employee perception and satisfactions level in determining the pay structure. Some theorists used the psychology concepts in determining the need for employee participation in the pay design system. In this perspective, the research on justice was undertaken, which has its origin in law and psychology. Deriving knowledge from these fields of study, two crucial elements emerged from the research on the organizational justice policies and employees need of participation in pay determination. They include the psychological theories of equitable distribution and the perception concept. Based on these theoretical foundations, the author determines that when employees are not satisfied with their performance and compensations, gradually they create a behaviour that forces them in voicing for an appropriate pay determination. If their voice is not heard, it can turn into organizational internal ...