58
H.A. KHAN
Inequality There are concerns among some researchers that globalization has increased the levels of inequality across the world. This increasing inequality has raised serious concerns affecting public personnel as well as society in general. There is an increasing inequality between skilled and non-skilled labor. “Over the past 20 years, the pay of the average chief executive has increased from 35 times, compared to an average production worker to 120 times. In other countries, too, notably Australia, the UK and New Zealand, the income gap between better educated and skilled workers and the rest has widened since the beginning of the 1980s. In most of continental Europe, however, it has remained much the same. One long-term solution is to ensure that the labor force is better equipped with education and skills” (Kouzmin and Korac-Kakabadse 1999, p. 232). Many are now concerned that globalization has now led to a demand for skilled people, thereby widening the gap between skilled and non-skilled people. However, the questions arise as to the role of public personnel management in reducing income inequality. One step in the right direction is to reduce the disparity between the top and the lower positions. The wage level at the lower positions must be kept at a level to maintain a decent standard of living. The top positions should be given enough salary to maintain their motivation. The HR manager in the public sector can devise a compensation system that seeks to eliminate the differences between the top positions and the lower positions. At present, it is unfortunate to see the top positions receiving huge increases while agencies have to struggle to pay a few cents more to lower-paying jobs.
Erosion of the Social Contract The rise of informal actors in the delivery of the services associated with globalization has eroded the social contract once enjoyed in the public services. Kouzmin and Korac-Kakabadse (1999) refer to the erosion of two types of social contract: the functional level and the organizational level. Despite the low visibility of the erosion of loyalty at the functional level, it is more pronounced at the organizational level. Organizational cultures are powerful tools in terms of the identity of the individuals in an organization. Organization culture creates a spirit of belongingness among the employees, who are able to take pride in their organizations. The erosion of the social contract can damage the organization culture and its associated values of identity and belongingness.
