Compensation Decisions

Chapter 1 explains how critical the proper compensation decisions can be for an organization.

The chapter also introduces the terms – internal consistency, market competitiveness, and the recognition of employee contributions

Assignment objective –

Understand the important terms in the chapter – internal consistency, market competitiveness, and the recognition of employee contributions

The assignment –

In your own words define and explain the three terms – internal consistency, market competitiveness, and the recognition of employee contributions – within the context of employee compensation.

Explain why all three issues need to be taken into consideration in creating an effective compensation structure for an organization.

Finally – identify and explain which of the three terms would be most important to you as you design a compensation system, and which of the three would be the least important in your design of a compensation system.

Include in your analysis – would your recommendation as to the most important of these compensation factors differ based on the type of organization? Why? Explain

Consider and address – would your recommendations change based on the number of employees working in the organization? Why? Explain

Would your recommendations change based on the location of the business? Why? Explain

In addition to the type of organization, number of employees and location what other factors might impact your decision as to which of the three factors of compensation determination might be the most or least important? Explain

Be complete

Explain your responses

Provide appropriate reasons and logic for your choices and your decisions.

Research and list at least three sources.

Remember – do not use direct quotes for any submission for this class

Do the research – read, understand and paraphrase the information into your own words

Submit your response in paragraph form.

Your submission should be between 300 and 400 words.

See the course syllabus for grading criteria.

Be sure to write in a formal and professional manner using the executive summary format. Write in paragraph form. Do not write in an outline or bullet point format.

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