Asked by Jelesa Junior on Sep 23, 2024
Verified
An organizational pay policy that pays above the market rate is known as a _____ policy.
A) lag
B) discriminatory
C) match
D) lead
E) advance
Organizational Pay Policy
Guidelines and strategies an organization uses to determine how employees are compensated for their work.
Market Rate
The average or prevailing price for goods or services in a particular market, often used as a benchmark in setting wages or prices.
Lead Policy
A set of guidelines or principles defining how to take the initiative or precedence in a specific area or situation.
- Attain knowledge on the notions of pay grades, pay ranges, and the critical role of market positioning (lead, match, lag).
Verified Answer
MT
Marvin Tañedo5 days ago
Final Answer :
D
Explanation :
A lead pay policy pays above the market rate to attract the best candidates and retain top employees. It is used when an organization wants to be seen as an industry leader in compensation. A lag pay policy, on the other hand, pays below the market rate, while a match pay policy pays at the market rate. A discriminatory pay policy is illegal as it is based on discrimination against a specific group of employees. An advance pay policy is not a commonly used term in compensation management.
Learning Objectives
- Attain knowledge on the notions of pay grades, pay ranges, and the critical role of market positioning (lead, match, lag).