COMMERCE 2BC3 Lecture 12: July 26 - COMBINED NOTES+LECTURE
28 Dec 2017
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Document Summary
Compensation costs are largest cost category in most firms. Varies by industry- highest in service organizations- hospitals, schools. Pay signals what is valued by an organization. 1 relates to pay structure- relative pay of different jobs and how much they are paid. Variation in pay due to individual performance, etc. Process of determining the relative worth of jobs within an organization. Poi: person compares own ration of perceived outcomes to perceived inputs. Employees evaluate their pay by comparing it with what others get paid and adjust their work attitudes and behaviours accordingly. External equity: pay comparisons focusing on what employees in other organizations are paid for doing the same general job. Internal equity: pay comparisons focusing on what employees within the same organization, but in different jobs, are paid - job evaluation. Product- market competition: challenge to sell goods and services at a quantity and price that will bring a return on investment.
