HRMT 70006 Chapter Notes - Chapter 9: Equal Pay For Equal Work, Scatter Plot, Job Satisfaction
13 Nov 2020
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Compensation systems aim to pay workers for the jobs they do and incentivize them through enhancing motivation and job satisfaction. Perception of fair pay are based on absolute and relative levels of pay. Wages and salary are foundation of compensation systems. Internal equity = requires that pay be related to the relative worth of jobs. External equity = perceived fairness in pay relative to what other employers are paying for the same type of work. Effective compensation management : acquire qualified personnel, retain present employees, reward desired behaviour, control costs, comply with legal regulations. Guiding principle for organizations to manage compensation. Understanding the elements of job/skill to determine fair pay. Compares jobs for internal equity and to identify comparable jobs at other organizations. Aka price the worth of each job. 3 approaches : job evaluation, job evaluation = determines worth/value of job; identify which jobs should be paid more than others.
