Question

QUESTION THREE

You have been employed as a consultant for the fair wages and salary committee of “God is Good educational institute”. The institution employs both lecturers and lawyers. The teachers have raised serious concerns regarding differences in their salary structure compared to that of the lawyers. From a labour economics perspective:

a) Explain the practical theory used by “God is Good educational university” . b) Criticallyargueyourcase(withpracticalexamples)onwhetherthemanagementof“God

is Good” is right in their decision or not .

c) Provide some recommendations to “God is Good educational institute” .

  

Answer 1

a)

Practical theory used by "God is Good educatinal university":

Job market has its supply and demand.

If demand for certain professionals increase than their supply, their salaries tend to rise.

Also, if supply of certain professionals increase above the demand, then wages tend to remain same.

b)

As in this case, teachers and lawyers, these two jobs are discussed.

Also it is given that teachers are paid lesser as compared to lawyers.

In my view, these two professions cannot be compared.

The entry of these two professinals is very different.

Job market of teachers and lawyers are not common.

So, the salaries of teachers and lawyers cant be compared.

Teachers salaries depend upon the demand and supply of teachers, while, lawyers salaries depend upon the demand and supply of lawyers. It might be possible that demand for teachers is less than supply. Also, the demand for lawyers is higher than its supply.

In conclusion, it can be said that, the management of "God is Good educational institute" is not wrong in discriminating the salaries of teachers and lawyers.

c)

Recommendations to "God is Good educational institute" :

1. Create fair policy in written.

2. Provide written document to all.

3. Include details for determination of salaries.

4. Also, include guidance on the growth of salaries.

5. Mention things clearly which depends on discretion of management.

6. Keep things transparent.

Doing all above will keep the employees informed about the policies and strategy of management.

This will help in avoiding serious concerns regarding differences in salary stucture.