Ateneo De Davao University

Jacinto St. Davao City

Case Analysis
Salary Inequalities at Acme Manufacturing

Submitted by:
Regina Naciluan
Chiara Carmel Sumampong
3AHRM-A

Submitted to:
Carolyne Tapire
HRM437 COMPENSATION ADMINISTRATION
Instructor

January 30, 2012

I.

Statement of the Problem:

In ACME MANUFACTURING Company, what would be the best strategy/ strategies
Joe Black will do in able to solve the problem regarding about the compensation tool
being currently implemented inside the company?
Sub. Problem:

How effective enough does the compensation tool to avoid sex discrimination
against women workers?

II.

Objectives:
To find solution on how to avoid sex discrimination inside the ACME MANUFACTURING
COMPANY.

To review the current strategy of the company and if there is a problem with it, Joe Black
should think of alternative ways to change it for the benefit of all workers.

To be able to change the salary payroll of employees currently implemented in the Acme
Manufacturing

III.

SWOT ANALYSIS

Strength

Structured organization &

Opportunities

responsibilities

The Acme manufacturing had

approximate 250 employees and was

the largest employer in the community

The company has a good job

evaluation system

Continuous development to the

Manufacturing world of business

Weaknesses

Threats

Sex discrimination

Internal competition

Lack of communication about the

Internal environment/external

matter of salary situation

Inequity of pay structure

3 female workers were paid less than

environment

Direct cost/indirect cost

the normal compensation

Poor job evaluation

IV: Alternative Courses of Action:

ACA 1. Joe Black should call the three female supervisors into his office, and discuss
the situation with them regarding to their salaries.
PROS: Joe Black should call those female supervisors who were paid less than the minimum
wage so for him to be able to decide what strategy he will used to avoid sex discrimination and
for him to re-compensate the salaries which should be given to them properly. HE should
change the current compensation tool for the benefit of all workers, especially of women
workers to avoid discrimination or inequality of distribution of wage.
CONS: If Joe Black will do that, some workers wont agree especially male workers, because
they will think that, its a waste of time and doing that male workers may think than its not fair.
They were inferior to women. Some would argue about if Joe Black will change the
compensation tool, additional fund should be needed.

ACA2. Joe Black should gradually increase the female supervisors salaries.
Pros: By doing it, it will remove the barrier in discriminating female workers. This would lead in
equal treatment of both female and male workers, and Joe Black will never be worried or be
guilty because he made a right choice in which by increasing the female workers salaries.
Cons: The Company will spend additional fund for increasing the female workers wages, and
making the female wage increase will take time.

ACA3. Joe Black should change the compensation tool which the company is regulating.
Pros: Equal distribution of wages among male and female workers, to avoid sex discrimination.
And that the company should directly focus its mission and objectives for the benefit of the
company and of its employees.
Cons: Time consuming and the company should re-change all the details of compensation
structure.

ACA 4. Joe Black should implement the equal pay act in accordance of the law
Pros: Equal payment among employees base on their respective job evaluation cluster.
Con: The male supervisors would be upset and female supervisors might comprehend the total
situation and want back pay.
V: Recommendation
I recommend that Joe Black should increase the salaries of the female workers and that he
should change the compensation tool base on equal pay act of the law which the company is

currently regulating for the benefit of the female and all workers. By doing those (increase the
salaries of the female workers and change the compensation tool), it will lead to a good mission
and a good reputation to the company. By doing it, it will remove the barrier in discriminating
female workers. This would lead in equal treatment of both female and male workers, and Joe
Black will never be worried or be guilty because he made a right choice in which by increasing
the female workers salaries. There is an equal distribution of wages among male and female
workers, to avoid sex discrimination. And that the company should directly focus its mission and
objectives for the benefit of the company and of its employees. The Acme Manufacturing should
also focus on their employees as their best asset in the company.