Asked by Megan Quinn on Jul 15, 2024

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Ergo Co. is a manufacturing company based in Texas. In the year after Ergo Co. implemented a comparable-worth policy, its expenses increased, and as a result, profits declined. What difficulty of comparable-worth policies does this example illustrate?

A) The employer is at an economic disadvantage because of increased pay for some jobs.
B) The policy overlooks the undervalued work performed by women.
C) The policy uses job enrichment to establish a pay structure based on market rates.
D) The employer ignores the evaluation points for each job.
E) Employees in lower-paid jobs are encouraged to meet the goal of comparable worth.

Comparable-Worth Policy

A principle in employment compensation that argues for equal pay for work of equivalent value, regardless of the job or employee's gender.

Economic Disadvantage

A condition where individuals, groups, or regions lack equal access to economic resources and opportunities, often leading to poverty and inequality.

  • Analyze the challenges and criticisms of pay policies like minimum wage laws and comparable-worth policies.
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MB
Maddie BirckheadJul 20, 2024
Final Answer :
A
Explanation :
This example illustrates the difficulty of increased expenses associated with implementing a comparable-worth policy, which can result in decreased profits for the company. This is a common challenge with comparable-worth policies, as they often involve significant adjustments to pay structures and compensation levels, which can be difficult to manage without impacting the company's financial performance. While comparable-worth policies may be important for addressing gender-based pay disparities and ensuring that all employees are fairly compensated for their work, they can also be costly and difficult to implement effectively.