Management and Organizational Studies 3342A/B Chapter Notes - Chapter 3: Human Capital, Sustainable Agriculture, Costco

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Lecture 1 chapter 1 the pay model. Compensation: all forms of financial returns and tangible services and benefits that employees receive as part of an employment relationship. Employee: want to be paid fairly and enough to support their lives. Stock holders: interest in pay of individuals (employees and executive) because it affects the price of the stock. Global perspective: companies go global early in formation to create a large market, need to understand compensation differences in different countries. Present value perspective start off at a lower rate. Cost commitment are you going to be profitable in the future. How much its costs to hire you. Pay: part of an exchange relationship (deal) An implicit contract is an unwritten understanding. 3 basic building blocks for a pay model. Internal alignment: comparisons between jobs inside an organization. External competitiveness: comparisons o compensation with competitors external to organization. Employee contributions: relative emphasis placed on employee performance.