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Case Study 1: Full Pay Transparency

Read Case Application #3 in your textbook (pg. 61, Title: Extreme Openness, Topic: Organizational culture, openness, pay transparency). For this memo, assume that you are the HR manager for a large corporation headquartered in Buffalo, NY. You have been asked to make a recommendation regarding whether the company should adopt a policy of full salary transparency or keep salaries private. To complete this memo, answer the questions below. DO NOT answer the questions that are included in the book.

For this memo, answer the following questions. Note: you should start your memo by clearly identifying your recommendation.
Should your company adopt a policy of full salary transparency or keep salaries private (this is your recommendation you must make a recommendation)?
Is salary transparency a good thing? Why?
What is the impact of full salary transparency (making salaries or salary ranges open and available to everyone)?
What is the impact of keeping salaries private? How should the company respond to inaccurate salary information posted to social media or job sites?
Will the trend towards salary openness change the way that managers manager their employees? Why or why not?

Memo Assignment:

Prepare a 1 page, single-spaced memo that answers the questions above. The formatting should be as follows:
Length: 1 page
Times New Roman, 12 point font
1 inch margins
Make sure your name is on the first page of the memo
No cover pages or fancy report covers needed

Your recommendations should be formatted as a short memo, following the guidelines presented in class lectures. Major section headings should be formatted with bold lettering, left justified, and ended with a period. Sample memos and the lecture slides on memo writing are posted on Blackboard.