COMMERCE 2BC3 Chapter Notes - Chapter 8: Product Market, Gross Domestic Product, Flat Organization
14 Dec 2016
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Employers view: pay is critical in attaining strategic goals, pay impacts employee attitudes and behaviours, and employee compensation is significant organizational cost. Employees view: policies having to do with wages, salaries, and other earnings affect their overall income and thus their standard of living. Pay structure: the relative pay of different jobs and how much they are paid. Pay level: the average pay, including wages, salaries, and bonuses of jobs in an organizations. Job structure: the relative pay of jobs within an organization. Pay policies are attached to jobs, not individuals. Employees often evaluate their pay relative to that of other employees and adjust their work attitudes and behaviours accordingly. If a person"s ratio of perceived outcomes is smaller than that of the comparison others ratio, under- reward inequity results. If a person"s ratio of perceived outcomes is larger than that of the comparison others ratio, over- reward inequity results.
