HRM 2600 Chapter Notes - Chapter 9: Expectancy Theory
16 Oct 2011
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Individuals form a ratio of their inputs to outcomes in their job and then compare the value of that ratio with the value of the ratio for other individuals in similar jobs. Setting organization compensation policy to lead, lag, or. Rewarding individual employee performance: employer"s ability-to-pay. Having the resources and profits to pay employees. Availability and quality of potential employees is affected by economic conditions, government regulations and policies, and the presence of unions. match competitors" pay: worth of a job skill levels, employee"s relative worth. Establishing the internal wage relationship among jobs and: area wage rates, cost of living. A firm"s formal wage structure of rates is influenced by those being paid by other area employers for comparable jobs. Local housing and environmental conditions can cause wide variations in the cost of living for employees. Inflation can require that compensation rates be adjusted upward periodically to help employees maintain their purchasing power: collective bargaining.
