Multi-Source Analysis. Research Context. Argument Analysis

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Multi-Source Analysis
Introduction
It is no secret that CEOs all over the world are being paid incredibly high salaries. Nicks (np) reported that in the US, CEOs make “335 times what workers earn” while Allen reported that in the UK they earn 129 times what the average worker earns. These numbers are quite high and while firms often appear to try to make sense of them, there is a likelihood that these salaries could be influencing or impacting productivity. The increase of executive pay is indeed a polarizing topic but one question remains: is it indicative of today’s unequal world? Inequality continues to rise in the world today and the widening gap in the pay of executives and other workers is one way that the world is encouraging inequality. Well, the world is indeed becoming more unequal by the day. Today, for example, it is widely reported that 1% of the world’s wealthiest individuals make as much wealth as half the population of the world. The gap continues to widen as the individuals at the top continue to increase their income while the other half’s remains stagnant. Apparently, no one at the top appears to notice how the status quo is rigged to help them maintain their position. But aside from these pay increases indicating an unequal world, this article seeks to determine how they effect the productivity of the employees.
Research Context
There are many aspects and narratives in the world that are wrong and that appear wrong. However, how can the world justify the notion that some CEOs earn close or more than a thousand times the salary of an average worker? In the past, CEO’s pay was determined through internal equity which means that it was compared to the employees of an organization. However, suggestions to make use of external equity were soon adopted and this means that the salaries of CEOs were determined based on the payment of other CEOs. This meant that CEO pay continued and still continues to rise as the salary of average workers remains stagnant. Well, this article’s main point is not to downplay the role CEOs play in helping organizations become and maintain profitable outcomes but to showcase a world that continues to neglect a certain percentage of its population while justifying its actions to enhance the status of a small percentage. Additionally, this article seeks to determine whether these increases have a direct impact on the productivity of the employees. How do employees view these executive pays and how is employee productivity affected or impacted with pay increments?
Argument Analysis
The Merriam-Webster Online dictionary defines a salary as “a payment usually of money for labor or services usually according to contract and on an hourly, daily, or piecework basis.” This means that a salary is determined by the work done. The amount of work an employee does eventually determine how much they will earn. The term salary is common but how does a salary affect an individual? Does a salary increase mean or translate to an increase in employee productivity? Well, in their study, Gilchrist, Luca, and Malhotra (2014) reveal that paying employees more does not necessarily lead to an increase in productivity. The researchers note that “our results show that the structure of the gift is central to generating reciprocity: simply hiring at and paying workers a high wage ($4) has no effect at all compared with hiring at and paying workers a low wage ($3).” However, they continue to indicate that “hiring workers at a low wage and then offering them an unexpected raise ($3 + $1s) significantly increases performance” (3). There is a catch in all this. Apparently, the researchers claim that this pay needs to have “no strings attached” meaning that employers should not be buying loyalty or seeking to encourage productivity from their employees by increasing pay. This, the researchers say will not have any direct effect. However, the researchers say that workers who receive gifts after they have been hired often reciprocate and their productivity levels increase compared to those who are gifted salary increments as a motivating factor to work hard. What this means is that workers know when they are being ‘bribed’ to work and when they are being appreciated. Showing appreciation will always encourage employees to work hard and to surpass their limits.
The second thing that appears to develop from this discussion is the idea that pay inequality or salary inequality happens to negatively affect the productivity or morale of employees. In their 2015 study, Breza, Kaur, and Shamdasani report that inequality in pay does appear to negatively affect the productivity and morale of employees. While their study is centered on employees who are at the same level, they do shed light on how differences in salaries could eventually impact how employees approach their jobs. Well, Gerdeman takes it a notch higher and says that employees could be negatively impacted by the salaries given to the CEOs. He notes that it is widely known that CEOs make more money than all lower-level employees. However, he continues to say that “when that disparity between a CEO and the average worker is p...