MHR 749 Lecture Notes - Lecture 7: Reservation Wage, Factors Of Production, Signalling Theory
8 May 2017
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Document Summary
External competitiveness: refers to an organization"s pay relative to other. Expressed in practice by setting a pay level that is above, below or equal to organizations competitors. Produce market factors: level of product demand, degree of competition. Labour market factors: nature of supply and demand. Organization factors: industry and technology, employer size, employee"s. Pay forms: the mix of the various types of payments that make up total compensation. Pay levels: the average of the array of rates paid by an employer (ex. Sum of base, bonuses, benefits, options / number of employees) Labour costs = number of employees x pay level. Pay rates reflect all costs associated with employment. The additional output from the employment of 1 additional person is a labour market factor that shapes external competitiveness. Marginal product of labour: the additional output associated with the employment of one additional human resource unit with other production factors held constant.
