MGT 462 Chapter Notes - Chapter 8: Firstclass, Regression Analysis, Double Bind
Document Summary
Chapter 8: designing pay levels, mix, and pay structures. Pay relationships among organizations > specify policy > select market > design survey > draw policy lines > merge internal and external pressures > competitive pay levels, mix, and structures. Major decisions in setting externally competitive pay and designing the corresponding pay structure: Interpret survey results and construct the market line. Construct a pay policy line that reflects external pay policy. Balance competitiveness with internal alignment through the use of ranges, flat rates, and/or bands. Pay ranges - range of pay rates from minimum to maximum set for a pay grade or class. Puts limits on the rates on employer will pay for a particular job. Survey - systematic process of collecting and making judgments about the compensation paid by other employers. Employer conducts or participates in a survey for a number of reasons: To adjust the pay level in response to changing rates paid by competitors.
