3/4/2010

We discussed Chapter 12 last Thursday. The characteristics of a job the the organization values is how you will be judged for pay. Some obvious things on the top of the list is education and experience. I then learned about how ridiculous the pay scale is for executive pay in the United States. The average ratio from executive pay to lowest paid employee is on average from 300:1 to 500:1. I think that this is ridiculous. This is obviously not a smart distribution of wealth in America. This is one of the reasons why the middle class is shrinking in the United States. Twenty percent of the top paid employees in the U.S. receive more than 50 percent of the total money paid to all employed people in the U.S. As the middle class shrinks the upper class will grow minimally and the lower class will explode and most people will be on the poor pay scale. We also talked about how cool incentive pay can be. I learned that I like the idea of a company having to post its employees pay amounts online for all to see. This helps keep public companies honest in their pay scales.