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Questions: 2-9. As a compensation professional, what would you do? 2-10. What factor(s) in this ethical dilemma might influence a person to make a less-than-ethical decision?

Questions: 2-9. As a compensation professional, what would you do? 2-10. What factor(s) in this ethical dilemma might influence a person to make a less-than-ethical decision?

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Case 2: Ethics Dilemma: Perpetuating the Gender Pay Gap at Safe Security Alarm Systems Roberto Jiminez, compensation manager for Safe-Security Systems, is scheduled to meet Sally Brown, director of customer satisfaction, at 3 pm today. The purpose for meeting is to discuss the terms of job offers for two candidates who they hope will fill vacancies in the customer service department. One will oversee customer service based on purchasing experience, and the other will oversee post-service (for example, after a routine service check or repair) customer satisfaction. Other than these differences, the required skills, knowledge, abilities, education, and relevant work experience are the same. Roberto and Sally hope that candidate Jill Johnson will oversee post-sales activities and Sean Miller will oversee post-service activities. In preparation for the meeting, Roberto reviewed annual salary survey information for customer service manager jobs in the local area, revealing a range of $50,000 to $75,000. He also compared Safe- Security's job descriptions and the competitors' job descriptions. Roberto concluded that the job descrip- tions are comparable and that salary offers of $60,000 were competitive. Roberto explained his findings and recommendations to Sally who expressed that the market salary information was no longer useful. She already told each candidate that they would receive a salary offer that is 10 percent higher than their current pay. Jill earned $45,000, resulting in a salary offer equaling $49,500 and Sean earned $60,000, resulting in a salary offer of $66,000. Neither Jill nor Sean knew the other's starting pay rate, and both were satisfied with the 10 percent increase. In an angry tone, Roberto asked Sally whether she considered the fact that both candidates pos- sessed equally impressive credentials or the fact that both would be performing the same job. Sally acknowledged their equal credentials and agreed that the jobs were equal, save for difference in cus- tomer satisfaction focus. She added that she had asked Sean and Jill their previous salaries, which led to her decision to offer each a 10 percent higher starting salary. Sally ignored Roberto's anger and stated that the salary offers fit well within the departmental budget and she could not afford to pay anything more. She also went on to say that Jill expressed joy about her offer because she is desperate to leave her current position. Questions: 2-9. As a compensation professional, what would you do? 2-10. What factor(s) in this ethical dilemma might influence a person to make a less-than-ethical decision?
Transcribed Image Text:Case 2: Ethics Dilemma: Perpetuating the Gender Pay Gap at Safe Security Alarm Systems Roberto Jiminez, compensation manager for Safe-Security Systems, is scheduled to meet Sally Brown, director of customer satisfaction, at 3 pm today. The purpose for meeting is to discuss the terms of job offers for two candidates who they hope will fill vacancies in the customer service department. One will oversee customer service based on purchasing experience, and the other will oversee post-service (for example, after a routine service check or repair) customer satisfaction. Other than these differences, the required skills, knowledge, abilities, education, and relevant work experience are the same. Roberto and Sally hope that candidate Jill Johnson will oversee post-sales activities and Sean Miller will oversee post-service activities. In preparation for the meeting, Roberto reviewed annual salary survey information for customer service manager jobs in the local area, revealing a range of $50,000 to $75,000. He also compared Safe- Security's job descriptions and the competitors' job descriptions. Roberto concluded that the job descrip- tions are comparable and that salary offers of $60,000 were competitive. Roberto explained his findings and recommendations to Sally who expressed that the market salary information was no longer useful. She already told each candidate that they would receive a salary offer that is 10 percent higher than their current pay. Jill earned $45,000, resulting in a salary offer equaling $49,500 and Sean earned $60,000, resulting in a salary offer of $66,000. Neither Jill nor Sean knew the other's starting pay rate, and both were satisfied with the 10 percent increase. In an angry tone, Roberto asked Sally whether she considered the fact that both candidates pos- sessed equally impressive credentials or the fact that both would be performing the same job. Sally acknowledged their equal credentials and agreed that the jobs were equal, save for difference in cus- tomer satisfaction focus. She added that she had asked Sean and Jill their previous salaries, which led to her decision to offer each a 10 percent higher starting salary. Sally ignored Roberto's anger and stated that the salary offers fit well within the departmental budget and she could not afford to pay anything more. She also went on to say that Jill expressed joy about her offer because she is desperate to leave her current position. Questions: 2-9. As a compensation professional, what would you do? 2-10. What factor(s) in this ethical dilemma might influence a person to make a less-than-ethical decision?
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