Question.1086 - One evening when she came to work to start the night shift, Lilly Ledbetter found an anonymous note in her mailbox at the Goodyear Tire & Rubber plant in Gadsden, Alabama. She had worked for Goodyear for 19 years as a manager and was shocked at what she read. On the note, her monthly pay ($3,727) was written along with the pay (which ranged from $4,286 to $5,236) of three of her male colleagues who started working for Goodyear the same year that she did and did the same job. Ledbetter (2012) stated, “My heart jerked as if an electric jolt had coursed through my body.” She filed a gender pay discrimination lawsuit under the 1964 Civil Rights Amendment and was awarded $3 million in back pay and other benefits she lost due to pay discrimination (e.g., contributions to her retirement).Lilly’s case was appealed to the U.S. Supreme Court, which ruled against Ledbetter. In the case of Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. 618 (2007), the U.S. Supreme Court decided that the statute of limitations for presenting an equal-pay lawsuit begins on the date that the employer makes the initial discriminatory wage decision, not at the date of the most recent paycheck. Lilly became famous after she lost the Supreme Court case. While she did not win the case, it did result in new legislation regarding when an equal-pay lawsuit can be filed. This court decision ultimately led to the Lilly Ledbetter Fair Pay Act of 2009 (Pub.L. 111–2, S. 181), which states the 180-day statute of limitations for filing an equal-pay lawsuit resets with each new paycheck affected by discrimination. The act is a federal statute and was the first bill signed into law by President Barack Obama in 2009. Lilly’s website states the following:For 10 years, Lilly Ledbetter fought to close the gap between women’s and men’s wages, sparring with the Supreme Court, lobbying Capitol Hill in a historic discrimination case against Goodyear Tire and Rubber Company. . . . Ledbetter will never receive restitution from Goodyear, but she said, “I’ll be happy if the last thing they say about me after I die is that I made a difference.” (www.lillyledbetter.comLinks to an external site.)The Lilly Ledbetter case shows that employees care a great deal about the rewards they receive from an organization, and these rewards must be fair. Lilly learned of the pay disparity with her male coworkers after a number of years on the job. She experienced a sense of moral outrage and filed a lawsuit to address the unfairness. As you learned, fairness is one of the guidelines for the effective implementation of reward systems in organizations. Employees pay attention to rewards— particularly what they are paid. Pay inequity may cause employees to feel undervalued by the organization and may reduce motivation. As seen in this case, unfair pay practices may also result in litigation. The federal statute based on Lilly’s case is clear that pay discrimination lawsuits may be based on every paycheck that a person receives throughout their employment. Equal pay for equal work is a concept that individuals in the same workplace be given equal pay for doing the same work. This concept is most commonly applied with respect to the gender pay gap—it was once estimated that women are paid 77.5% of men’s earnings (U.S. Census Bureau, 2008). On the seventh anniversary of the passage of the Lilly Ledbetter Fair Pay Act, the Council of Economic Advisors published an update on the wage gap between men and women. In 2014, median earnings for a woman working full-time all year in the United States totaled only 79% of the median earnings of a man working full-time all year. Phrased differently, women earned 79 cents for every dollar that men earned. The gender wage gap has many causes and contributors, including differences in education, experience, occupation and industry, and family responsibilities. But even after accounting for these factors, a gap still remains between men’s earnings and women’s earnings. Organizations should be proactive in examining their pay policies to ensure equal pay for men, women, and minorities. Employers must design reward systems that are fair and follow organizational justice guidelines to avoid litigation—but also because it is the right thing to do.Here is a 16-minute video of Lily Ledbetter explaining the situation (you can move to 2:48 in the video for the start of her story): https://www.youtube.com/watch?v=APeem8JEHVkLinks to an external site..Discussion Questions What are the implications of the Ledbetter case for the performance management system? What can managers do to make sure such issues do not occur? Explain Lilly Ledbetter’s reaction to learning she was being paid less than her coworkers based upon pay dispersion. How do you feel about Ledbetter never receiving compensation from Goodyear for her lower wages for 10 years? Relate this case to what you learned about organizational justice. What type(s) of justice does the case illustrate? Explain how the case illustrates the justice(s) you selected.
Answer Below:
Considering xxx Ledbetter xxxx with xxxxxxxx some xx the xxxxxxxx intervention xxxxxxx indulge xx order xx streamline xxx performance xx management xxxxxx are xxxxxxx regarding xxx primary xxxxx that xx the xxx equity xxxxxxx should xxxxxxxx regular xxxxxx that xxxxxxxxx pay xxxxxxxxxxx by xxxxxxxx that xxxxxx race xx any xxxxx discriminatory xxxxxxx do xxx play xxxxxxxxxxx role xx the xxxxxxxxxxxx Secondly xxxxxxx can xxxx on xxxxxxxxxxxx a xxxxxx transparent xxxxxxxxxxxx policy xxxxxxxxx whereby xx should xx easily xxxxxxxxxx by xxx the xxxxxxxx stakeholders xxxx should xxxx include xxx decisions xxx what xxxxxxx are xxxxxxxxxx to xxxx such xxxxxxxxx and xxxx intervention xxxxx also xxx in xxxxxxxx setting xx an xxxxxxxxx environment xxxxxxx the xxxxxxxxxxx could xx a xxxx of xxxxxxxxx problem xxxxxxx with xxxx understanding xxx third xxxxxxxxxxxx could xx flat xxxxxx the xxxx of xxxxxxxxxxxxx corporate xxxxxxxxx often xxxxxxxxx pyramid xxxxxxxxx that xxxxxxx the xxxx of xxxxxxxxxxxxx whereby xxx lower xxxxx employees xxxx find xx difficult xx communicate xxxx the xxx management xxxxxxxxx pertaining xxx internal xxxxxxxxxxxxx and xxxxx low xxxxx employees xxx work xx the xxxxx could xxxx a xxxxxx solution xx managers xxxxx practice xxxxxxxxx communication xxxx should xx implemented xxxxxx organizations xxxxxxxxx various xxxxxxxxxxx wherein xx regular xxxxx they xxxxxx encourage xxxx dialogue xxxxxx Lastly xxxxxx their xxxxxxxx practices xxx managers xxx HRs xxxxx the xxxxx and xxxxxxx aspects xxxxx wage xxx compensation xxxxxxxxx and xx be xxxx mandate xxxx they xxxxx by xxx relevant xxxx and xxxxxxxxxxx like xxx Lilly xxxxxxxxx Fair xxx Act xx order xx avoid xxx future xxxxx repercussions xxxxxxxxxxx Ledbetter xxxxxxxx pay xxxxxxxxxx was xxx to xxx fact xxx discrimination xxx based xx the xxxxxx with xxx co-workers xx in x scenario xxx was xxxxxxx this xxxxxxx been x sense xx hidden xxxxxxxxx to xxx the xxxxx Ledbetter xxxxxxxxxxx a xxxxx outrage xxx the xxxxxx that xxxxxxxxx was x loyal xxxxxxxx for xxxxx her xxxxxxxxxxx towards xxx pay xxx fair xxx equitable xxxxxxxx the xxxxxxxxx motivated xxx to xxxx the xxxxxx by xxxxxx a xxxxxxx being xxxxxxxxxx to xxxxxxx the xxxxxxxxxx It xx disheartening xx realize xxxx Ledbetter xxxxx hidden xxxxxxxxxxxxxx by xxx receiving xxxxx wage xxx years xx draws xx several xxxxxxxxx related xx the xxxxxxxxxxxxx of xxx organizations xxxxxx and xxxxxxxxx including xxx legal xxxxxx In xxxxx of xxxxxxxxxxxxxx justice xxxxxxx considering xxxxxxxxxxxx justice xxxxxxxxx the xxxxxxxx in xxx outcomes xxxxxxxxxx the xxxxxxxxxxxx in xxxxxxxxxx case xxx pay xxxxxxxxx depicted xxx lack xx distributive xxxxxxx since xxxx a xxxxxxxxx she xxx unfairly xxxxxxxxxxx when xxxxxxxx to xxxx coworkers xxxxxxxx procedural xxxxxxx the xxxxxxxxx the xxxxxxxx of xxx process xxxx is xxxxxxxx to xxxx any xxxxxxxx in xxxx case xxxxxxxxxx injustices xx Goodyear's xxxxxxxxxxxx decisions xx there xxx no xxxxxxxxxxx and xxxxxxxxx process xxx determining xxx leading xx gender-based xxx disparities xxxxxx the xxxxxxxxxxxxx justice xxxx questions xxx fairness xx interpersonal xxxxxxxxxxxx and xxxxxxxxxxxxxx as xxx case xxxxxxxxxx a xxxx Ledbetter xxxxxxxxxxx received xxx be xxxxxxxxxx as x violation xx interactional xxxxxxx as xx exposed x lack xx open xxx honest xxxxxxxxxxxxx within xxx organization xxx Amberly xxxx great xxxx I xxxxx like xx counter xxxxx your xxxxxxx post xxxxx the xxxxxxxxx case xxxxxxxxxxx issues xx pay xxxxxxxxxxxxxx and xxxxx impact xx employee xxxxxxxxxx and xxx satisfaction xxxx essential xx consider xxx potential xxxxxxxxx of xxxxxxxxx legal xxxxxx against xxxxxxxxx for xxx disparities xx such xxxxxxxxx legal xxxxxxx could xxxxxxxx towards xxxxxxxxxx consequences xxxx this xxxxxxxxx has xxxxxxxxxxxxx for xxxx in xxxxxxxxxx costs xxx businesses xx the xxxx it xxxxx impact xx terms xxxxxxxxx in xxxxxxxxx for xxxxxxxx benefits xxxxx will xxxx impact xxx security xxxxxx and xxxxxx in xxxxxx burnout xxxx Moreover xx overreliance xx legal xxxxxxxx might xxxxxx employer-employee xxxxxxxxxxxxx hindering xxxx communication xxx collaboration xxxxxxx of xxxxxx relying xx legal xxxxxx fostering xxxxxxxxxxx pay xxxxxxxxxx and xxxxxxxxx fair xxxxxxxx processes xxxxx be xxxx effective xx addressing xxx disparities xxxxx maintaining x positive xxxx environment xx Veronica xxxxxxxxxxxxxx great xxxx I xxxxx like xx counter xxxxx your xxxxxxx post xxx Ledbetter xxxx may xxxxxxxxx employees xx scrutinize xxx disparities xxxxxxxxxxx leading xx excessive xxxxxxxx disputes xxx a xxxxxxx of xxxxxxxx within xxx organization xxxxxxxx Lilly xxxxxxxxxxx emotional xxxxxxxx is xxxxxxxxxxxxxx it's xxxxxxxxx for xxxxxxxxx to xxxxxxx such xxxxxx through xxxxxxxxxxx channels xxxxxx than xxxxxxxx emotionally xxxxx could xxxxxxx workplace xxxxxxxx It's xxxxxxxxxxx that xxxxxxxxx didn't xxxxxxx compensation xxx compensation xxxxxxxxx can xx complex xxx should xx based xx evidence xxx case xxxxxxxxxx the xxxxxxxxxx of xxxxxxxxxx pay xxxxxxxxxxx promptly xxxxxx than xxxxxxx for xxxxx action xxx Ledbetter xxxx primarily xxxxxxxxxxx the xxxxxxxxxxx of xxxxx action xx achieving xxxxxxx as xx took xxxx years xxx legislative xxxxxxx to xxxxxxx the xxxxxxxxx This xxx raise xxxxxx about xxx effectiveness xx procedural xxxxxxx within xxx legal xxxxxxMore Articles From Operation Management
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