Final answer:
Organizations maintain individual salary secrecy by using pay grades and fostering implicit contracts that provide stability and predictability in employee compensation, thus ensuring motivation without disclosing specific individual salaries.
Step-by-step explanation:
Organizations have attempted to find a balance between maintaining individual salary secrecy and providing enough compensation information to motivate employees. One common compromise is implementing pay grades or salary ranges that provide a general idea of compensation without disclosing specific individual wages. The existence of implicit contracts can also play a role. These contracts suggest that employers won't dramatically cut wages during tough economic times, providing a sense of security to employees.
Conversely, employees don't anticipate huge salary increases when the business is thriving. This approach fosters a level of transparency regarding the general compensation structure, while also providing protection and predictability to both employees and employers. By knowing the potential wage progression and understanding the company's commitment to stable wages, employees can stay motivated without needing to know the exact salary of each coworker.