MGM101H5 Lecture Notes - Relative Price, Value Proposition

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

Employees were hired with an agreed upon wage. Employers should have the right to pay different employees with different wages. No significant incentives for seniority style pay: new workers get paid the same (or lower rate) even with higher performance. Did the employers actually do something wrong: the women agreed to work in the environment and now want to change it. Better performance pay may make way for a system that allows for favouritism. How much leeway should managers have in paying their employees. Companies can essentially do the same thing. What differentiates them is how they add value: value added by satisfying customer needs and wants.