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Should salaries of Management Employees be linked to those of the lowest paid workers?
While it is an accepted fact that high salaries are a pre-requisite to attract the best managers, it is equally well-accomplished that wage-disparity between Management and Labor leads to the maximum disputes between the two groups and leads to conflicts. It is therefore important to find the golden mean between the two as both the groups are important for the growth and well-being of the entire organisation. I, however, find linking executive and worker salary
unrest arising out of wage-disparity. Second, the managers, in order to increase their own copensation, would strive harder to increase the overall productivity of the organisation, thus increasing revenues. Hence, they could increase their own compensation, alongwith those of the workers, without affecting the ratio of their salaries. Therefore, I feel linking worker and executive salaries would be a great tool to improve not only worker relations, but also the overall productivity of the organisation.