Ch12 DQ Assignment
- In setting up a pay structure, what legal requirements must an organization meet? Which of these do you think would be most challenging for a small start-up business? Why?
- In gathering data for its pay policies, what product markets would a city’s hospital want to use as a basis for comparison? What labor markets would be relevant? How might the labor markets for surgeons be different from the labor markets for nursing aides?
- Why might an organization choose to pay employees more that the market rate? Why might it choose to pay less? What are the consequences of paying more or less than the market rate?
- Imagine that you manage human resources for a small business. You have recently prepared a report on the market rate of pay for salespeople, and the company’s owner says the market rate is too high. The company cannot afford this level of pay, and furthermore, paying that much would cause salespeople to earn more than most of the company’s managers. Suggest three possible measures the company might take to help resolve this conflict?
- What are the advantages of establishing pay ranges, rather than specific pay levels, for each job? What are the drawbacks of this approach?
- Suppose the company in question 1 wants to establish a skills-based pay structure. What would be some advantages of this approach? List the issues the company should be prepared to address in setting up this system. Consider the kinds of information you will need and the ways employees may react to the new pay structure.
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