salary secrecy ob ppt
TRANSCRIPT
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Should salaries be kept secret?Organizational BehaviorNovember, 2010
Bhavya Khurana (10DCP- 065)
Kapil Agarwal (10DCP- 071)
Manu Vijaykumar (10DCP- 076)
Mathew Joseph (10DCP- 077)
Mridul A. Greenwold (10DCP-078)
Sahil Panjwani (10DCP-089)
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1. Brief Overview of Subject companies
Bharat Petroleum Corporation Limited
Kent Builders & Developers
2. Research methodology
3. Inferences
The Case for secrecy of salaries
The Case against secret salaries
4. Equity theory
5. Conclusion
Contents
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Bharat Petroleum Corporation Limited (BPCL) is one of thelargest state owned oil and gas company in India.
It is involved in the refining and retailing of petroleumproducts.
Fortune Global 500 rank of 287
BPCL is often referred to as an MNC in PSU garb. It isconsidered a pioneer in marketing initiatives, and employsBest in Class practices.
Bharat Petroleum Corporation Limited
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Kent Builders & Developers
Kent Builders & Developers are creators of premiumresidential and commercial projects since 1987.
They have covered the entire gamut of construction ventures inresidential projects, integrated townships, IT parks,commercial complexes and hospitality sector.
They have received the Sky Lounge award and the Bajaj Houseaward
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We have considered a sample of twenty people from the two companies
Kent Developers had the policy of keeping the salary secret
BPCL revealed the salary of their employees
Information was gathered with the help of a questionnaire preparedwhich included five questions which are as follows:
Should salaries be kept secret?
Will you reveal your salary to peers if it is kept secret?
What are the benefits of keeping the salary secret?
What are the benefits if not keeping the salary secret?
Any other comments?
Research Methodology
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Agree, 70%
Disagree, 30%
70% respondents supportedtheir companys policy.
Agreement with companys policy
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Case for secrecy of salaries
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Name & designation Reasons
M. F. BalasinorwalaCEO
Prevents increase inWorker rivalry
Namita ShirodkarSecretary
Avoids conflicts withinthe company
Keerthi Reddy SeniorManager
Lose faith in the company
Workers must be on goodterms with each other
Pradeep NagpalCFO
Create bad blood amongworkers
Maintains Goodwilltowards each other
Avoids Confrontations
Dominic RoderickHead of Security
Waist of company time ofresponses
Hussain DaruwalaDoes not effect theperformance
Gaurav NagpalOffice
Administrator
Leads to unnecessary
power struggles
Maintains goodwill
Avoids conflictswithin the company
AvoidsConfrontations
There is no benefitof disclosure
Leads tounnecessary power
struggles
Lose faith in thecompany
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Case for secrecy of salaries- Kent
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Top reasons in support for salary secrecy
1. Avoids employee conflicts/maintains goodwill
2. There is no benefit of disclosure/waste of time
3. Disclosure leads to unnecessary power struggle
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Case against secrecy of salaries
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Name & designation Reasons
Akhil KhambataCOO
Openness and trust witheach other which leadsto a better workenvironment
Encourages confidenceamong workers
Anushil KadamCMO
Secrecy encouragesrumour, gossip andmisinformation
Saifuddin Poonawala
Marketing Executive
Valuable way to measure
one's performance withone's own peers
Better for companieswith large workforce anddepartments withconstant competitionamong them
A way to compareperformance withpeers
Encourages opennessand trust leading tobetter environment
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Case against secrecy of salaries- Kent
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Name & designation ReasonsAshokKumar(sales exec)
Creates trust in theorganization
Amit Sarkar(Sr. manager HR)
Create employeeconfidence in theorganization
Neha Das(Sr. manager mktg.)
Prevents bias
Udit Saluja(Marketing exec)
Prevents bias
Prevents rumors
Mayur Bhatia(sr. manager HR)
Prevents spreading of
rumorsEmployees have a rightto know
Sandeep Mishra(Jr. manager acc)
Salaries will become fair
Dhruv Dhawan
(business strat div.)
Helps distribute work
fairly
Prevents bias
Creates trust in theorganization
Prevents rumors
Salaries will be fairer
Leads to fairdistribution of work
Employees right
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Case against secrecy of salaries- BPCL
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Top reasons against salary secrecy
1. Creates an environment of trust in the
organization
2. Prevents bias/leads to fairer salaries
3. Prevents spreading of rumors
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Application of Equity Theory
1. Kent developers practice secrecy to avoid inequity
Disclosure leads to referent comparison leading to
possible de-motivation.
2. BPCL tries to use inequity as its strength
1. Disclosure leads to competition which provides
motivation to improve efficiencies
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Related cases
Transparent salaries lead to better working environment
Semcos no secrets policy
Brazilian diversified-interests company Semco offers a unique template for profits
through openness. Among a range of workplace democratisation strategiesimplemented during the 1980s, all salaries are transparent and debatable.
The division of profits between workers and managers is fixed; and evenexpenditures need to be approved by a committee of workers representatives.
Far from a fiscal disaster, Semco has become well-known throughout the world forthe success of these initiatives. Its CEO Ricardo Semlar is a respected HR thoughtleader and visiting scholar to Harvard Business School.
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Disclosure leads to fairer salaries
Singapores National Kidney Foundation (NKF) scandal of 2005
Whilst the $600,000 a year pay packet for CEO TT Durai was certainly higher than
most would have expected, it was revealed during a defamation trial that he had alsoreceived annual bonuses of between 80% and 100% of that amount.
Peanuts, one observer had remarked but perhaps the real problem was thesurprise and secrecy. Had NKF and its CEO been transparent about the pay andother expenses, would the donating public have felt such a betrayal of trust?
Related cases
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Salary secrecy avoids employee conflicts
Case ofNYSE chairman
Richard Grasso, chairman of the New York Stock Exchange, quickly went from folk
hero, for the way he got the exchange running again after the terrorist attacks ofSeptember 11th, to the incarnation of corporate greed when it was revealed that hewould be awarded $140m in accumulated benefits this year.
Mr Grasso tried to stem the tide of outrage by agreeing to forgo another $48m dueto him, but that appeased no one, and he was forced into an ignominious
resignation.
Related cases
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Thank you