Milkovich asserts that “Fairness is a fundamental objective of pay systems” (page 19). As he discusses this, he notes that the way a decision is reached can be as important as the decision itself.
Additionally, fairness can be considered on an individual, group, or class level. He includes fairness as one of four objectives in his pay model. That model identifies four policies related to
pay: internal alignment, competitiveness, contributions and management. For this essay, I’d like you to consider the policies of internal alignment, competitiveness and contributions. Within each
policy area, identify a possible fairness issue that could arise. Briefly describe that possible problem and ways it can be avoided, reduced or eliminated.