Compare and contrast the three types of decisions that are crucial for designing an effective pay plan.
What will be an ideal response?
Student answers will vary but should demonstrate knowledge of the details of each type of decision. The three types of decisions that are crucial for designing an effective pay plan are pay level, pay structure, and individual pay. Pay level refers to the choice of whether to be a high-, average-, or low-paying employer. Compensation is a major cost for any organization, so low wages can be justified on a short-term financial basis. But being the high-wage employer-the highest-paying company in the region-ensures that the company will attract many applicants. The pay structure decision is how to price different jobs within the organization. Jobs similar in worth usually are grouped into job families. Each job family has a pay grade with a floor and a ceiling. Individual pay decisions determine different pay rates for different people holding jobs of similar worth within the same job family. These pay differences are decided in two ways. First, some individuals in the same job family have more seniority than others. Second, some are better performers than others and therefore deserve higher pay.
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____________________ is a procedure, which banks often use, of deducting interest in advance when making a loan
Fill in the blank(s) with correct word
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What will be an ideal response?
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Answer the following statement true (T) or false (F)