Major school districts, to the best of my knowledge, employ an open book policy when it comes to wages. Every employee gets paid based on a standardized formula that usually includes experience, education level, and how many years the employee worked for the system. The Clark County School District in Nevada found itself in an unpleasant situation a few years ago when it became obvious that the formula no longer helped it attract the necessary teachers due to the noncompetitive pay restrictions. The board voted to make a change that eliminated a pay benefit to having a graduate degree in education while increasing pay to those who teach certain topics such as mathematics and science. This caused a revolt by the school district's teachers. Many who spend thousands of dollars getting their master's degrees lost the salary perks of their extra education. At the same time, the teachers who were not paid an extra bonus felt that there subject matter expertise was considered less valuable than math or science. Class, how does this demonstrate the dangers of rigidity that occurs with transparent payroll systems? What can companies do from the human resource perspective to help mitigate this rigidity?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Major school districts, to the best of my knowledge, employ an open book policy when it comes to wages. Every employee gets paid based on a standardized formula that usually includes experience, education level, and how many years the employee worked for the system. The Clark County School District in Nevada found itself in an unpleasant situation a few years ago when it became obvious that the formula no longer helped it attract the necessary teachers due to the noncompetitive pay restrictions. The board voted to make a change that eliminated a pay benefit to having a graduate degree in education while increasing pay to those who teach certain topics such as mathematics and science. This caused a revolt by the school district's teachers. Many who spend thousands of dollars getting their master's degrees lost the salary perks of their extra education. At the same time, the teachers who were not paid an extra bonus felt that there subject matter expertise was considered less valuable than math or science. Class, how does this demonstrate the dangers of rigidity that occurs with transparent payroll systems? What can companies do from the human resource perspective to help mitigate this rigidity?  

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