Pay inequality is a main cause of job dissatisfaction and demotivation, and therefore a
major HR diversity issue (McLoughlin and Carr 1997; Van den Bos, Lind, Vermunt and
Wilke 1997). EEO and AA have been integrated with compensation practices by many
organizations, again, like Digital, Esso and Westpac (Kramar 1998). Kramar has been
supported by Dagher et al. (1998) who also reported that diversity practices in
remuneration are widely used by Australian organizations. However, Dagher et al. (1998)
attributed positive remuneration practices to a ‘union effect’. These authors state that a
relatively strong trade union movement in Australia has prevented the occurrence of wage
discrimination among unionized employees.
Pay inequality is a main cause of job dissatisfaction and demotivation, and therefore amajor HR diversity issue (McLoughlin and Carr 1997; Van den Bos, Lind, Vermunt andWilke 1997). EEO and AA have been integrated with compensation practices by manyorganizations, again, like Digital, Esso and Westpac (Kramar 1998). Kramar has beensupported by Dagher et al. (1998) who also reported that diversity practices inremuneration are widely used by Australian organizations. However, Dagher et al. (1998)attributed positive remuneration practices to a ‘union effect’. These authors state that arelatively strong trade union movement in Australia has prevented the occurrence of wagediscrimination among unionized employees.
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