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First, Consider the fact that during the past few years, man

First, Consider the fact that during the past few years, many firms have laid off thousands of workers, frozen employee pay and eliminated or reduced bonuses. Yet at the same time many of these firms have retained "key employees" and CEO by giving them huge compensation increase. This has created large inequities in the workforce within some organization. What are the pros and cons of such action? Explain.

Second, what impact of unions can have on pay for performance strategies within a firm?

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In some cases, according to the media, employees were let go because companies were tightening their belt, and then turned around and did in fact increase the pay of certain executives (typically the CEO and CFO). It did create a large inequity in many big corporations. Also, in some companies, we've got executives (CEO mainly) making big money (we're talking hundreds of thousands to millions), and they have benefits galore. In the same company, we have workers barely getting by on their salaries, with skeleton ...

Solution Summary

First, Consider the fact that during the past few years, many firms have laid off thousands of workers, frozen employee pay and eliminated or reduced bonuses. Yet at the same time many of these firms have retained "key employees" and CEO by giving them huge compensation increase. This has created large inequities in the workforce within some organization. What are the pros and cons of such action? Explain.

Second, what impact of unions can have on pay for performance strategies within a firm?

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