Purpose of this assignment is to better understand how pay for performance (meritocracy) has an impact on individual employees within a corporation and to analyze if there any diversity, equity, and inclusion impacts. The goal is to understand in this narrow lens how all of the aspects of diversity can impact these decisions within a workplace and in an individual’s personal

Part Two:

Based on the readings and discussions, what groups are potentially impacted by pay disparity?

Part Three:

Review “Diversity and Organizational Competitiveness”

Where do you see pay fitting into Diversity and Organizational Competitiveness?

Part Four:, what are three potential solutions that are recommended for minimizing pay disparity in organizations?

3.Use a calculator to make a chart projecting the effects of discrimination in initial salaries offered to Blacks and Whites and annual salary increases for two equally qualified, college-educated new hires.

a. Make columns for starting salaries of $30,000 and $33,000, respectively, for the new employees. Assume the Black applicant earns a 4% increase per year and the White applicant earns a 6% increase per year, based on their performance evaluations. What are the salary differences after 10 years? After 20 years?

b. Make another column, based on the assumption that the White applicant receives promotions every three years and the Black applicant is promoted every five years. For promotions, assume a salary increase of an additional 10%. What are the salary differences after 10 and 20 years given the differences in initial salaries, in increases, and in promotion rates?

c. What effects would such salary disparities have on each employee’s and the employer’s contributions to the employees’ Social Security, tax-deferred savings plans, and retirement plans?

d. Feature 4.5, “Why Pay More? Race and Sex Discrimination in New Car Pricing,” considers effects of discrimination against Blacks in car pricing. Speculate on the effects of lower initial starting salaries, lower salary increases, and fewer promotions, combined with high prices for consumer goods, mortgages, and insurance, on a person’s ability to increase wealth.

Answer rating: 100% (QA)

Answer Part 1 Extrinsic motivation is the importance placed on external rewards such as bonuses and promotion or the threat of wage cuts or dismissal In an agency theory context incentive contracts de... View the full answer