Explore BrainMass

Organizations and high salaries

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Some organizations structure executive compensation so that executives can receive amounts ranging from hundreds of thousands of dollars to millions. Moreover, it's not uncommon for organizations to terminate or lay off large numbers of employees AND to give top executives big bonuses during the same year.

1. Can organizations justify high salaries while firing or laying off large numbers of employees?
2. What role does equity theory play in executive compensation and employees' perceptions of executives' pay?

© BrainMass Inc. brainmass.com October 25, 2018, 6:24 am ad1c9bdddf

Solution Preview

This can be hard to justify for the common worker, however from a management view this is justifed if the layoffs and streamlining was in just cause. Many organizations are experincing economic trouble, due to the current state of the economy. Many senior managers are looking at areas that can be reduced to help the state of the business, such reductions can be in operations, maketing and etc. The overall use of bonuses have been in place for decades, however the bonuses seem to be more then enough. The "bonuses may be ...

See Also This Related BrainMass Solution


How do you explain the role compensation plays in the achievement of organizational goals. Can you please analyze the impact of compensation decisions on external and internal stakeholders, including the effectiveness of managers and employees. Draw conclusions based off of data collected from organizations.

Please give personal experiences also to help break-down these questions.

View Full Posting Details