MANA 443 Lecture Notes - Lecture 7: Marginal Revenue, Factors Of Production, Marginal Product
2 Feb 2017
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Refers to the pay relationships among organizations - the organization"s pay relative to its competitors. Setting a pay level that is above, below, or equal to that of competitors. Determining the mix of pay forms relative to those of competitors. Shaped by three factors: labour market (supply and demand) Pay level refers to the average of the array of pay rates paid by an employer. ( base + bonuses + benefits + stock options) Pay forms refer to the mix of the various types of payments that make up total compensation. Pay levels and pay forms are two important factors you should think about when you consider how to set your compensation practices externally competitive. You can set the pay level higher, equal, or lower than your competitors. You can use different pay forms to attract specific candidates or retain your current employees; high portion of benefits or high portion of incentives.
