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    Differences in Salaries

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    You have invited some neighbors over for dinner, including couples from Japan, working here on a temporary assignment. As the conversation turns to the differences in working style, you recall the following: "In the United States, key executives make the important decisions. Although Japanese leaders also take responsibility for their organization's performance, they involve workers in 'quality circles' to discuss decisions that affect them. A closer relationship is also encouraged by Japan's lower salary difference between executives and workers: about 10 percent of the difference that is typical in the U.S" (Macionis, 2004).

    QUESTIONS:

    1. Can the large differential between workers' and executives' salaries in the U.S. be justified, especially when compared to significantly smaller differentials in other countries?
    2. Could the disparity eventually lead to the class conflict that Karl Marx and Max Weber predicted would eventually occur in capitalist societies?

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    Solution Preview

    THIS RESPONSE IS ALSO ATTACHED.

    RESPONSE:

    Let's take a closer look discussion and example at this interesting and ongoing debate.

    1. Can the large differential between workers' and executives' salaries in the U.S. be justified, especially when compared to significantly smaller differentials in other countries? Deliverable Length: 5-6 paragraphs

    It depends who you talk to. Some argue that the company cannot justify (see attached article), while others (mostly the corporations and executives themselves) present arguments that justify the large disparity in terms of the executive having a right to receive a percentage of the gross revenue of the corporation and for the high levels of responsibility. On some level, the latter argument sounds reasonable, as it is indeed a large responsibility to run a multi-million dollar corporation, and it is a level of responsibility that the lower level workers do not have to shoulder. It also sounds reasonable that if the 'executive' employs effective strategies and increases the gross profit by millions of dollars, ...

    Solution Summary

    This solution explains if the large differential between workers' and executives' salaries in the U.S. can be justified, especially when compared to significantly smaller differentials in other countries. It also explains if the disparity could eventually lead to the class conflict that Karl Marx and Max Weber predicted would eventually occur in capitalist societies.

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