Difference In Productivity Between Highly Paid And Lowly Paid Employees

Background

The increasing level of productivity provides the scope of growth in pay for a majority of people. However, Sin, Stillman and Fabling (2017) pointed the potential has been squandered in recent times. The wealth generated in the last few decades has failed to trickle down to the majority of the population due to the choice of policies made on behalf of the ones with power; income and wealth have exacerbated the level of inequality. In between the rising level of inequality the potential pay growth from translating into actual pay growth for the workers. The result related to wage has been stagnant (Britton and Propper, 2016).

For future productivity related gains can lead to dynamic growth of wage and widely shared levels of prosperity. Thus, it is important to explore the policies that can reconnect pay with productivity and restore the power of the workers. Without the implementation of the mentioned policies, efforts to ensure economic growth for increasing the level of productivity

Background to research organization

The research in the mentioned case scenario makes use of a varied study centers with special reference to MNC. The research in the mentioned context analyses the importance of organization and power in relation to wage. The aspect of power is rightly analysed in case of MNC due to differences in work positions and levels of productivity

Rationale

Huang and Zhang (2017) believe that rising tides should lift the boats, it is for the same reason, as the economy rises every individual should reap the rewards. During the last century the wages of the workers rose simultaneously with the level of productivity. As influenced by Gao (2017), the economy was subjected to expansion and efficiency through the scope of better pay. However, from the 1970s to 2018, the total productivity of the workers reached stagnation, increasing by 11.6% over the last four decades after the adjustment for inflation (Almasifard, 2018). This means, although people are working more productively than ever, outcome of the labours have accrued to those sitting at top and enjoying corporate profits, especially in the immediate time

A high level of productivity provides a scope for expected growth for the majority of the people. However, the current potential has been squandered in rising times. The income and wages generated in the last few years. The relation between employee productivity and wages has been a source of controversy. As per the classic labour theory Thompson and Smith (2017), it assumes that workers are liable to receive the salary that is equivalent to the marginal labour productivity. Once, the market is adequately competitive referring to the labour demands is equal to the level of supply of labour. Despite the imperfect competition, triggered by informational asymmetries and series of institutional factors, there is a wedge between average worker compensation and level of productivity. It is for the same reason; workers or the employers can obtain rents from existing relationships of employment. As proposed by Gao (2017), alternative views in relation to wage formation emphasize the role of occupational characteristics and even the impact of wages in terms of discrimination as per the level of labour productivity

Research based intervention stated the fact that the wage gap created a significant difference in levels of productivity. A second important aspect is to understand the extent to which the employment characteristics are rewarded differently from the level of marginal productivity. A comparative study conducted by Nisic (2017), highlighted that the relative wages of middle aged workers (35 to 50 years) and the older workers (Above 50 years), and are markedly higher than the expected productivity differentials for the older groups. Rosell (2017), pointed out the overpayment of college degree managers and the workers, meaning higher return in wages irrespective of the levels of productivity. In similar regards, professionals have a large positive wage of the blue collars one having significant negative premium. Based on the above stated facts, it can be concluded that the rewards in the labour markets are inclusive of non-competitive and institutionalized employment related links. These links are shown to have substantial deviation from perfectly competitive economic models of employment

Research questions

What is the possible relation between productivity and wage payment among employees?

What are the expected outcomes in relation to the difference in productivity between highly paid and lowly paid employees?

What are the possible recommendations for overcoming the existing issue?

Aims and objectives

Aim: Difference in productivity between highly paid and lowly paid employees

Objectives:

To understand the possible relation between productivity and wage payment among employees

To evaluate the expected outcomes in relation to the difference in productivity between highly paid and lowly paid employees

To suggest possible recommendations for overcoming the existing issue

Methodology

The research will make use of positivism as chosen philosophy. The chosen philosophy will work on the expectation that the stated hypothesis regarding wage difference and productivity holds true and the research will proceed based on the same. The research additionally will make use of qualitative approach and gradually work on collecting data from relevant sources. The method of data collection will be based on the use of purposive sampling. The inclusion criteria for the chosen research sampling will be based on the fact that the research participants need to be well versed with English and an existing employee of MNC Company. The research will make use of close ended survey questions on a sample of 150 people, on online platforms. Since, the research makes use of human participants, there are serious ethical concerns. In order to address the ethical concerns it is important that the details of the participants are kept anonymous and none of them are forced to participate against their wishes.

Resources

The resources needed are:

• Time
• Money
• Ethical Form
• Research Journals
• Internet for conducting the survey

Reference

• Almasifard, M., 2018. Gender wage gap in selected developing upper-middle income countries. International Journal of Development Issues.
• Bresler, L. and Stake, R.E., 2017. Qualitative research methodology in music education. In Critical Essays in Music Education (pp. 113-128). Routledge.
• Britton, J. and Propper, C., 2016. Teacher pay and school productivity: Exploiting wage regulation. Journal of Public Economics, 133, pp.75-89.
• Fletcher, A.J., 2017. Applying critical realism in qualitative research: methodology meets method. International journal of social research methodology, 20(2), pp.181-194.
• Gao, C., 2017. The Wage Gap and its Effects on Well-Being, Motivation, and Productivity.
• Huang, Y. and Zhang, Y., 2017. Wage, foreign-owned firms, and productivity spillovers via labour turnover: A non-linear analysis based on Chinese firm-level data. Applied Economics, 49(20), pp.1994-2010.
• Nisic, N., 2017. Smaller differences in bigger cities? Assessing the regional dimension of the gender wage gap. European Sociological Review, 33(2), pp.292-3044.
• Rosell, O., 2017. Wages, competition and the surplus of labour: a classical contribution to explaining profit. Cambridge Journal of Economics, 41(1), pp.63-80.
• Sin, I., Stillman, S. and Fabling, R., 2017. What Drives the Gender Wage Gap? Examining the Roles of Sorting, Productivity Differences, and Discrimination.
• ten Ham-Baloyi, W. and Jordan, P., 2016. Systematic review as a research method in postgraduate nursing education. health sa gesondheid, 21(1), pp.120-128.
• Thompson, P. and Smith, C. eds., 2017. Working life: renewing labour process analysis. Palgrave Macmillan.