General Business BUS206 Lecture Notes - Lecture 7: Prevailing Wage
22 Sep 2020
School
Department
Course
Professor
Document Summary
Labor-intensive industries tend to pay lower than technology- intensive industries; New technology within an industry influences pay levels. Large organizations tend to pay more than small ones. Higher pay levels may be well-suited to particular strategies such as higher value-added customer segments. Three factors determine relevant labor markets: occupation, geography and competitors. Jobs skills and knowledge required and their importance to organizational success. Data from product market competitors are likely to receive greater. Employee skills are specific to the product market. Labor costs are a large share of total costs weight when: Supply of labor is not responsive to changes in pay. Probable relationships between external pay policies and objectives. Employer of choice corresponds to the brand the company projects as an employer. Shared choice begins with traditional options of lead, meet, or lag. Also offers employees choices in the pay mix. Offering too many choices may lead to confusion, mistakes, and dissatisfaction.
