MANAGING COMPENSATIONEmployees seek various psychological rewards from their jobs, but this does not diminish the importance of the compensation they receive. It is essential that this compensation be equitable in terms of the job’s value to the organization and in relation to the pay other employees receive. The purchasing power of workers’ salaries must be adjusted upward periodically to accommodate rises in the cost of living. In addition, compensation payments must be consistent with the terms of the labor agreement, where one exists, and with state and federal regulations governing it. Issues of equal pay for comparable worth, pay compression, and low wage budgets are emerging issues in the field of management compensation.EMPLOYEE RIGHTS AND DISCIPLINEThe rights of employees to protect their jobs while obtaining fair and just treatment from employers received much attention during the 1990s. On the other side of the balance, are the employer’s responsibilities to provide a safe and efficient workplace for employees while expecting productivity and a positive attitude from all jobholders. Issues such as drug testing, smoking on the job, access to one’s personnel file, notice of plant closing, and unfair discharge are therefore topics of interest to all organizational members.When employees exhibit unsatisfactory behavior or performance it may be necessary for an employer to take disciplinary action against them. If the employee is represented by a union, the disciplinary action is likely to be appealed through the grievance procedure provided for in the labor agreement. In a nonunion organization, the aggrieved employee may use an alternative dispute-resolution procedure established specifically by the employer. In either the union or nonunion setting, management may ultimately have to defend its position to a specified individual or group who will decide on the reasonableness of the action taken. To defend themselves successfully, as well as to simply impose fair and objective disciplinary procedures, supervisors and managers need to understand the principles of effective discipline.Organizational ethics extends beyond the legal requirements of managing employees in human resources management. Managers must comply with governmental regulations to promote an environment free from litigation. However, beyond what is required by law is the question of organizational ethics and the ethical or unethical behavior engaged in by managers .Question: First, read the section on dispute resolution in your textbook. Then, from your reading, answer the following:
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