Pay Secrecy Essay

Pay secrecy? What does it mean? How do you define pay secrecy? According to the Academy of Management Review, in the article “Exposing Pay Secrecy,” pay secrecy is defined has a pay communication policy restricting employees’ from accessing information regarding the pay of other employees’ being paid in the organization, and the ability to exchange personal pay related to information of others (Bamberger & Belogolovsky,2010; Colella, Paetzold, Zardkoohi, & Wesson, 2007). This has been one of the most controversial issues under researches topics in management sciences (Colella, Paetzold, Zardkoohi, & Wesson, 2007). The complexity of pay secrecy can be broken down into few critical issues: the issue of information availability, employer restricts

There are no less than three major cost of pay secrecy. To begin with representatives or people’s judgements about their discernments of believes will be foregone. Secondly, representative’s execution motivation can be anticipated to be dismissed or reduced. Lastly being viewpoints from financial matters and labor market becomes less effective since representatives will not move to their most elevated esteemed value (Colella, Paetzold, Zardkoohi, & Wesson, 2007). According to the article Exposing Pay Secrecy, “Pay secrecy is about lack of information, thus producing uncertainty for employees and an asymmetrical information status between employees and the organization.” Based on this statement, the academy of management review concluded that the results are biased, and organizations are taking significant effort to supply impartial recompenses based on a person’s commitment (Colella, Paetzold, Zardkoohi, & Wesson,

But first we need to know how employees feel motivated in work place. Motivation is a basic psychological process (Olusegun, 2012). According to the journal by Olusegun 2012, motivation is a crucial factor of our behavior along with perception, personality, attitudes and learning. Motivation is the “willingness to exert prominent levels of effort toward organizational goals, conditioned by the effort’s ability to satisfy some individual need” (Ball). Motivation can be characterized as strengths acting together or inside an individual to start a behavior. Motivation is the key that may make you enjoy your work truly (Ball). Going back to the cost of pay secrecy, it impacts on individual’s performance. Employee motivation is reduced because of pay secrecy and its effects on task performance. However, most of these are speculations has there are very limited research done on this matter (Colella et al., 2007 & Bamberger et al., 2010). The article done by Colella et al. speculated there are few mechanisms explaining the effects of pay secrecy on task performance but still these factors remain poorly understood (Colella et al., 2007 & Bamberger et al., 2010). Based on the journal Pay secrecy and Individual Task Performance by Bamberger et al. “Cognitive choice theories of motivation suggest that just how committed an individual may be to a given task, and hence just what proportion of