Psychologist Case

An organizational psychologist helps different companies and organizations to determine the appropriate rate to pay an employee when similar companies are paying a higher or lower rate. An organizational psychologist may be available in house or as needed when the company is in need or their help. The different aspects of the companies' salary may be examined by the organizational psychologist. The company may need to pay more wages to the employees or at least wages equal to the other organization. The following is a scenario that will illustrate how "A job evaluation reveals that people in job X should be paid $30,000 per year, but a salary survey reveals that other companies pay such employees $40,000 per year".

Advantages and Disadvantages of Paying Employees $30,000

The advantage of employers paying employees $30,000 dollars is that low income families as well as singles get to still have benefits that they can still be eligible. For example food stamps, section8 housing, health care benefits along with many more state programs can be beneficial to the low salary wages. In additional to the advantage of lower pay salaries is that ones can have better retirement pension package. On the other hand he or she can't have higher pay with the best incentive package it has to be one or the other depending on which one is at best for the individual being single with children or not so dependent on high salaries because he or she want to plan for the future. As a result many apple employees work hard for less and the employers want him or her to go above and beyond their job duties task without any rewards with less higher pay given such as; 30,000 or less salary. Apple employers work their workers hard so that they have a successful turnover with employees quitting or getting fired from the organization.

In contrast the disadvantage of he she salary being $30,000 or less is that tax payers are hit with cost coming out of he or she checks to contribute to these different programs and the working middle class not getting ahead but is keeping them further behind on their expenses it should be a balance for taxpayers not to feel the monetary finances because working class people are taking care of people needs who can't afford expenses due their situations, incarceration inmates, welfare assistance programs this should be something that the government handle and not the working middle class or wealthy people by not taking their hard earnings to support all the people needs in society. As results Wal-Mart definitely play a major role to this disadvantage for employee's low earnings of $30,000 or less. According to Lee, and Mitchell, (1994, a person is dissatisfied this may lead to a sequence of events including reduced organizational commitment, more job search activities, greater ease of movement, stronger intentions to quit, and a higher probability of employee turnover.

Overcompensation

When companies decide an employee's compensation, rarely do they compare apples to apples. Geographic's, market size, and company position are major factors when determining compensation (Carroll, 2013). While some companies pay less than employees are worth, those that overpay employees run the risk of drowning the company in exaggerated expense. It is important to know where your company stands in the market as well as how it stacks up against others. Employee compensation is a critical decision and HR must have a good starting point. If employees feel they are overpaid they may work to their full potential, but that does not leave room for motivational adjustments. To keep employees engaged, the next step would be to move them up to a position relative to their pay. If a higher position is not available at a reasonable time, the pay is going to generate expense that does not fit the budget. A star performer will expect more pay as times goes by. The company has to be prepared to offer pay increases or the employees' performance will decrease. Overall, pay must be equal to output and productivity or the company.

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