The Workplace Gender pay gap actually stands for the difference between the average monthly income of all males in a society and average monthly income of all females in a society. The difference actually states the non-alignment in payments to the employees on the basis of gender. The recent analysis of the ABS or Australian Bureau of Statistics earning data has conveyed that the distance between the gender wage gap in Australia has been rising from the last decade. It is been observed that the gender wage gap was brought down to 15.1% in February 2005 due to government interference and non-profit organization participation. However the gender wage gap has been again on the rise in the recent years, which is 18% in August 2014. This has brought a point of concern for the government agencies and an alarming condition for the non-profit organizations (ABS, 2014).
There exists a deep relation between the organization behavior and wage gap. Wage gap or inequality in payment on the basis of gender has found in various organizations around the world. Not only in the underdeveloped economies but also in various developed economies this problem has been prevalent. Women in the organization are often discriminated on pay and are even under represented in the senior management. This way not only the wage gap but the authority gap has also been found in many organizations (Bakker & Schaufeli, 2008). This organization behavior of paying low to its employees especially women employee can be mainly be due to the reason that they are male dominated organizations. Thus the males in these organizations find it difficult to help their respective egos understand that the female can perform well and even better than them in the organization. Due to this reason that male high level executives may not like to add a female executive or high level officials near their seat. Although this is an old and not so regarded conception, but it still prevails in the mind of many people (Trickey, 2011).
There are various factors that affect the organization behavior towards the increasing gender pay gap in the present day world.
Women mostly work in the lesser productive jobs that leads to the low prospects of rising pay and getting pay hikes or promotions. Most of the women in the present day world takes charge of employment when they are forced to support the financial conditions of their family. This mostly occurs after marriage. Until then the opportunity to get higher education and learn technical skills wither’s away. Thus they have to compromise to work on a low paying job which has no definite productive output as such. This includes the secretary job, assistant job, typist job, receptionist etc.
Some women who can avail the chance to get higher education and better skills are not supported by their families as they are considered to study for the purpose of learning and not doing jobs later on. This lack of counseling in women results in making them short sighted about their career and hence they don’t concentrate on getting higher education. The result is than when they are to apply for job they are not ready with high technical skills as engineering, software designing etc which forces them to end up doing a compromised and low earning job (Burrel & Morgan, 1992).
Women mostly work in health, education and public administration sectors. There the productivity of work is lesser and the greed of the employers is so high that they are offered substantially lower pay. Some women would not even mind doing cleaning, care work and other low paying work just because they have responsibility to provide financial support to their family but lacks the skills and abilities to secure a better and technically skilled job just because they were not counseled well during the education period (Fisher, 2006).
In Australia, the pay is actually calculated on the full-time weekly basis which excludes taxes. Also the overtime work and salary sacrificed is not calculated. The part time workers are not considered in these calculations as their ability to earn and the amount they earn are both not consistent. In last decade the pay gap on the basis of gender has risen subsequently in Australia. It has raised from 15.1% in 2005 to 18% in 2014. This shows the increasing trend of pay gap on the basis of gender being followed in Australia. There are various reasons behind the fact that the pay gap is increasing in Australia. These are stated as below.
1. According to NATSE, 60% of the wage gap in Australia is due to the direct discrimination, which states that women are paid less just because they are women and they work in a male dominated society.
2. The wage fall takes place up to 5% when women return back from their maternity leave.
3. Women who prefer to care for the upbringing of their child for three years has to sacrifice 10% of their earning on joining back to the office.
4. Women are offered jobs in non-productive work. In Australia at present, 75% of women are hired in clerical and administrative jobs, 68% in community and personal service and 63% as sales worker.
5. The agreements made during job realization takes advantage of women insensitiveness to income which has resulted in bringing huge pay gap. As per the agreements, the women on average weekly basis earn $1173,00 as against men who earn $1469.90. This way the absence of bargaining ability and no support of any formal authority to fix the women pay scale has resulted in increasing pay gap in the country.
It is been estimated by ABS or Australian Bureau of Statistics that if the gender pay gap is reduce by just 1% than the Australian GPD will grow by 0.5%. Also by making women pay scale as competitive as men would result in adding $56 billion to the annual GDP of the country. This is because of the fact that women save more than men. Even with the responsibilities and high expenditures they have a natural quality to save more than men. This results in improving the economic conditions of the country which has been dwindling since year 2008 that observed the global slowdown (ABS, 2014).
In conclusion, we can say that the rising issue of gender pay gap has resulted adversely in affecting the economy of Australia. It has not only disrespected the women’s ability to work and perform but brought into light the inappropriate employment activities that have been followed in the present day world to earn more money. In underdeveloped and non-developed countries the women pay and plight both are depleting due to the rising greed of the employers who do have old notions and low beliefs. It is therefore a black mark on the male dominated society to pay low to the women employees who might have higher abilities and skills to perform better than the male employees. In the developed economies the rising gender pay gap has displayed the incapacity of the capitalist society to give equal opportunities to women even after the application various government legislations and international laws (Wood et al., 2003).
Women in the developed and underdeveloped nations therefore have to compromise on doing a low pay job because they are to support their family expenditure. They are not given the right direction or support by the family members which results in declining their abilities and interest towards fetching more skills and higher education. Hence when they are married and have to look around for job they have to stick to the low paying job because of its non-productiveness and their inability to perform high skill job (Gibson, 2006).
Various recommendations can be suggested as follows.
Bakker, A.B. & Schaufeli, W.B., 2008. Positive organizational behavior: Engaged employees in flourishing organizations. Journal of Organizational Behavior, pp.147-54.
Burrel, G. & Morgan, G., 1992. Sociological paradigms and organization analysis elements of the sociology of corporate life. Ashgate: Suirrey.
Durkheim, E., 1997. The Division of Labor in Society. 1st ed. New York: Free Press.
Fisher, E., 2006. Paying for performance- Risks and Recommendations. N Engl J Med., pp.1168-70.
Fray, A.M., 2007. Ethical behavior and social responsibility in organizations: process and evaluation. Management Decisions., 45(1), pp.76-88.
Gibson, S., 2006. Beyond a culture of silence: Inclusive education and the liberation of voice. Disability and Society., 21(4), pp.315-29.
Heger, B.K., 2007. Linking the employee value proposition (evp) to employee engagement and business outcomes: Preliminary findings for a linkage research pilot study. Organization development Journal, pp.121-33.
Hofstede, G., 2001. Culture's Consequences: comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks, CA: SAGE Publications.
Huxham, Chris & Eden, C., 2001. The Negotiation of purpose in multi-organizational collaborative groups. Journal of Management studies., 38(3), pp.373-91.
Klein, L.C..C.E.J..&.C.R.M., 2006. The social costs of stress: How sex differences in stress responses can lead to social stress vulnerability and depression in women. In C.L.M.K.&.S.H. Goodman, ed. Women and depression: A handbook for the social, behavioral, and biomedical sciences. New York: Cambridge University Press. pp.199–218.
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