HRM 3490 Lecture Notes - Lecture 10: Central Tendency, Interquartile Range, Weighted Arithmetic Mean

• School: York University
• Department: Human Resources Management
• Course: HRM 3490
• Professor: Ping Peng

Document Summary

** understanding the labour market (the external value that the market is placing towards the job. ) Ensure that it is being done within the market - and geographic location (same goes for conducting compensation surveys within the geographic region) (on vs ab) In general, the price (wage) for a particular type of labour depends on the demand for that labour relative to its supply, constrained by the ability of employers to pay. In theory, whenever there is a surplus of a particular type of labour, the price for that labour falls. In reality, wages seldom decline in ongoing firms unless the employer is experiencing financial difficulties and wage cutting is seen as a necessity. This is because wage cuts often have negative consequences for the employer such as: increased turnover, and reduced employee performance. New firms take advantage of a labour surplus by hiring employees at a lower rate than existing employers are paying.