Explore the implications of strategic compensation policy on three societal classes: poverty class, middle class, and wealthy class

Societal Class Introduction and Alignment

The purpose of this assignment is to provide you with the opportunity to better understand the implications of pay policy on three societal classes: poverty, middle class, and the wealthy. A look at each of these will take place but special emphasis will be placed on poverty. According to the most recent Census data (2011), poverty is on the rise. What does this mean for employers? Are employers a part of the problem or part of the solution? This research effort looks for some answers to these questions and more in an aim to locate strategies for building bridges out of poverty. In this assignment, you will create a PowerPoint presentation with embedded notes, discussing the implications of pay policy on societal classes – including an in-depth discussion of whether organizations have any responsibility to its employees who may reside in the societal class – poverty.

Upon successful completion of this assignment you will be able to:

• Explore the implications of strategic compensation policy on three societal classes: poverty class, middle class, and wealthy class; formulating ways to encourage positive implications and mediate negative implications in the current workplace.

Resources

• Textbook: Compensation
• Article: http://www.worldatwork.org/waw/adimLink?id=28330

Assignment Lecture

Ruby K. Payne, Ph.D. is a leading U.S. expert on the mindsets of poverty, middle class and wealth. Two of the books that she has written include: A Framework for Understanding Poverty and Bridges Out of Poverty: Strategies for Professionals and Communities. After much research, Payne has defined poverty as

‘the extent to which an individual does without resources.’ These resources are the following:

• Financial: Having the money to purchase goods and services.
• Emotional: Being able to choose and control emotional responses, particularly to negative situations, without engaging in self-destructive behavior. This is an internal resource and shows itself through stamina, perseverance, and choices.
• Mental: having the mental abilities and acquired skills (reading, writing, computing) to deal with daily life.
• Spiritual: Believing in divine purpose and guidance.
• Physical: Having physical health and mobility.
• Support Systems: Having friends, family, and backup resources available to access in times of need. These are external resources.
• Relationships/Role Models: Having frequent access to adult(s) who are appropriate, who are nurturing to the child, and who do not engage in self-destructive behavior.
• Knowledge of Hidden Rules: Knowing the unspoken cues and habits of a group. (Payne, 2005, p. 7)

Therefore, based on Payne’s definition of poverty, impoverishment can occur whenever a person does without any one or more of the above listed resources. She does provide some additional guidelines as well. A few include:

(1) poverty is relative – it exists only in relationship to known quantities or expectations, (2) poverty occurs in all races and in all countries, (3) economic class is a continuous line, not a clear-cut distinction, (4) generational poverty and situational poverty are different, (5) an individual brings with him/her the hidden rules of the class in which he/she was raised, (6) to move from poverty to middle class or middle class to wealth, an individual must give up relationships for achievement (at least for some period of time), (7) two things that help one move out of poverty are education and relationships, and (8) four reasons one leaves poverty are: it’s too painful to stay, a vision or goal, a key relationship, or a special talent or skill. (pp. 2-3)

Payne, R. K. (2005). A framework for understanding poverty (4th ed.).Highlands, TX: aha! Press, Inc.

Instructions