Asked by Noelia Noyola on Sep 23, 2024
Verified
After establishing a policy line for pay in the external market a company must decide on its own pay policy. Which of the following will affect the company's pay policy?
A) the role of performance-based pay in the organization
B) the stage of the firm's development
C) the strength of union demands
D) the organizational culture
E) all of the above
Performance-Based Pay
A compensation system where an employee's pay is directly linked to their performance outcomes or achievements.
Stage of Development
The phase within a process, organization, or product lifecycle characterized by specific attributes or milestones.
Union Demands
The requirements or changes proposed by a labor union on behalf of its members, typically during negotiations with management.
- Grasp the influence of organizational structures and market conditions on the development and approach of compensation plans.
- Identify the impact that organizational strategies and policies have on compensation plans.
Verified Answer
SC
Selena Chapman4 days ago
Final Answer :
E
Explanation :
All of the listed factors can affect a company's pay policy. For example:
A) The role of performance-based pay in the organization will affect how the company decides to link pay to performance, and how it structures its pay system.
B) The stage of the firm's development may influence how much the company can afford to pay, and whether it needs to offer more incentives to attract certain types of employees (e.g. early-stage startups may offer equity compensation to compensate for lower salaries).
C) The strength of union demands can impact whether the company needs to negotiate pay rates with unions, and whether it needs to comply with certain collective bargaining agreements.
D) The organizational culture can shape employees' expectations for pay, and affect how receptive they are to different types of pay structures or incentives.
A) The role of performance-based pay in the organization will affect how the company decides to link pay to performance, and how it structures its pay system.
B) The stage of the firm's development may influence how much the company can afford to pay, and whether it needs to offer more incentives to attract certain types of employees (e.g. early-stage startups may offer equity compensation to compensate for lower salaries).
C) The strength of union demands can impact whether the company needs to negotiate pay rates with unions, and whether it needs to comply with certain collective bargaining agreements.
D) The organizational culture can shape employees' expectations for pay, and affect how receptive they are to different types of pay structures or incentives.
Learning Objectives
- Grasp the influence of organizational structures and market conditions on the development and approach of compensation plans.
- Identify the impact that organizational strategies and policies have on compensation plans.