Gap Analysis: Riordan

There are many people in the world that have unequal access to life chances. The world is marked by strong disparities in income and living standards among and within nations. Today, most people live under economic conditions over which they have little control" (Kottak & Kozaitis, 2003. ch 13. p. 1). Stratification is a factor that reaches around the world. Social stratification exists in America because the wealth and power belongs to a small portion of the population (McGrath, 2009). Social stratification involves not only socio-economic inequality, but the belief system held by people in America. Social and economic inequalities stratify a world system defined by economic returns and political alliance. Wealthy people possess an enormous amount of power over the political system and are held in high esteem by society. A stratified society exists when there is an unequal distribution of wealth, power and prestige. In American society, political power and wealth are not distributed equally (Johnson, 1996). There is a general perception that the wealthier those who are, the more powerful and superior they are to the average person. Income, which often determines power, determines an individual's class economic and political position in society or by social status. Class or socioeconomic status (SES) permeates our social behavior and thought (Kottak & Kozaitis, 2003. p. 2).

Although there continues to be a considerable discussion as to what explains this class gradient, there is an emerging consensus that social class is a "fundamental determinant" of population health. (Link & Phalen, 1995) Together with race and gender, class constitutes a core social structure (House & Williams, 2003). Social class is more than a property of individuals, rather, it is more than a 'position' one occupies; it is also an expression of macro-societal forces system that produces stratified hierarchies within modern societies. A social structure creates the enormous inequalities that we observe in nearly every aspect of human existence across the entire life course. Social class is also intimately bound up with work and the labor process (Johnson & Hall, 1995). Through our work, and the work of our parents, that we enter into the life chances and circumstances of a particular social class.

The organizational status of each employee would be achieved through personal effort in an open class system versus the social class to which each employee belongs (Kottak & Kozaitis, 2003). Guaranteed merit based upward mobility is a factor that can motivate top candidates to come to work for a given organization. Furthermore, merit-base upward mobility will proceed to motivate employees to stay and continue working with the organizations because he or she see that their efforts are being recognized and rewarded with upward mobility within the organization. Another motivational benefit of an open class system within an organization is that it will inspire individuals to work in a dedicated and efficient manner toward achieving organizational goals.

This paper illustrates how Proctor & Gamble exhibit class differentiation between employees existing in the ranges of income. Recently skill levels have been used to distinguish different occupational class groups. Afive5 occupational class scheme has been used to demonstrate: 1st Class: Upper Level Managers and Professionals; 2nd Class: Medium Level Managers and Professionals; 3rd Class: Lower Level Office and Service Workers; 4th Class: Skilled Manual Workers; 5th Class: Unskilled Manual Workers.

This paper discuss three features that can affect an organization's strategic plan.

They are classes of employees working within the organization, regional variations that exist within the organization, and the impact of the changing family definitions in today's world. These factors have a potential influence on the successful recruitment and retention of a diverse workforce. Proctor & Gamble is an example of a national organization that demonstrates the impact of these three factors.

How individuals are paid determines the type of social class one is in, therefore Procter & Gamble is discussed with illustration of how employees are ranked by social class. According to Procter & Gamble's website, employees pay and financial benefits are rated as above-average. To keep salaries competitive the company participates in outside salary surveys every 12-month. Individual salaries are reviewed every 12-months. In addition to competitive compensation, Procter & Gamble offers signing bonuses for some employees; share-purchase plan for all employees; defined benefit pension with employer contributions (up to 4% of salary); defined contribution pension plan with employer contributions (up to 1% of salary); life & disability insurance; retirement planning assistance and subsidized internet for telecommuting employees (Proctor & Gamble, 2010).

Upper and Middle-Class Employees

Lower-Class Employees

The pay scale on the above chart puts Proctor & Gamble's Brand and Assistant Mangers in the upper-class with the Engineers, Sales and Research employees are in the middle class. Research shows that Proctor & Gamble's pay wages that puts production and manufacturing employees at or below the poverty level. According the Department of Health and Human Services Poverty Guidelines, employee with a Family Unit of two is under poverty guidelines (2009).

Family Unit | 48 Contiguous States and D.C. | Alaska | Hawaii |

1 | $10,830 | $13,530 | $12,460 |

2 | $14,570 | $18,210 | $16,760 |

3 | $18,310 | $22,890 | $21,060 |

4 | $22,050 | $27,570 | $25,360 |

5 | $25,790 | $32,250 | $29,660 |

6 | $29,530 | $36,930 | $33,960 |

7 | $33,270 | $41,610 | $38,260 |

8 | $37,010 | $46,290 | $42,560 |

As the above charts are illustrated, class differentiation between employees exists in the ranges of income. Proctor & Gamble pays its employees wages at mean industry levels and offers them good benefits by industry standards (Proctor & Gamble Inc., 2010)

The work values demonstrated by these social classes are uniform across the board because these work values are directed by a steadfast dedication

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