BUSI 2312U Chapter Notes - Chapter 9: Equal Pay For Equal Work, Job Analysis, Reward System
Document Summary
Compensation is the cash and non-cash rewards employees receive in exchange for their work. Employees are more likely to be satisfied and motivated to contribute to the achievement of organizational objectives. Dissatisfaction arises because employee needs are affected by absolute and relative levels of pay. When the total, or absolute amount of pay is too low, employees cannot meet their physiological or security needs. Relative pay, which is an employee"s pay compared with that of other workers. Acquire qualified personnel: compensation needs to be high enough to attract applicants, pay levels must respond to the supply and demand of workers. Retain present employees: when compensation levels are not competitive, some employees quit, pay must be kept competitive with that of others. Ensure equity: strive for internal and external equity. Internal equity requires that pay be related to the relative worth of jobs.
