Define pay policy and the consequences of pay level and pay mix decisions

Unit 4 Compensation and Benefits

 

1. Define pay policy. Which competitive pay policy would you recommend to an employer? Why? Does it depend on circumstances faced by the employer? If so, which ones? Your response should be at least 300 words in length

 

2. There are consequences of pay level and pay mix decisions. Identify and briefly discuss each factor. What pay level does the efficiency wage predict? What pay level does the fairness wage predict? Does the theory accurately predict organization behavior? Why, or why not? Your response should be at least 300 words in length.