MHR 749 Lecture Notes - Lecture 1: Merit Pay, Life Insurance, The Techniques
3 Apr 2017
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Document Summary
Some people view pay as a measure of justice. The gender gap still exists: men earning more than women on average. Compensation matters to those who provide equity of businesses. Compensation should supposedly be tied to performance: to the degree that the interests of executives are aligned with those of stockholders or shareholders. Compensation directly influence their success in two ways: The pay individuals receive in return for the work they perform is usually the major source of their financial security: pay plays a vital role in a persons economic and social well-being. Employees may view compensation as the return in an exchange between their employer and themselves, as an entitlement of being an employee of the company, or as a reward for a job well done. Employees invest in education and training, they contribute their time and energy at the workplace: compensation is their return on those investments and contributions.
