COMMERCE 2BC3 Chapter Notes - Chapter 8: Harvard Business Review, Motivation, Equal Pay For Equal Work
11 Nov 2016
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Pay structure: the relative pay of different jobs (job structure) and how much they are paid (pay level) Pay level: the average pay, including wages, salaries, and bonuses of jobs in an organization. Job structure: the relative pay of jobs within an organization. Equity theory: employees often evaluate their pay relative to that of other employees. Equity theory suggests that people evaluate the fairness of their situations by comparing with those of other people. Attract the best people to apply for the job and accept job offer (entering work force) Retain good talents (efforts go recognized, keeps good employees in the company) Motivate people to put more efforts into their work. Compensation costs are the largest cost category in most firms. Varies by industry- highest in service organizations (eg. hospitals, colleges/universities) Smaller companies have far less indirect compensation where as larger firms have much more.
