Identify the seven basic issues that make up an organization’s compensation strategy.
What will be an ideal response?
Ability to pay. This is an honest assessment of how much an organization can afford, or are willing to afford, in order to compensate employees.
Types of compensation. This refers to the mix of the four basic components of compensation—base pay, wage add-ons, incentives, and benefits—that are offered to employees. We must divide available funds among the components.
Pay for performance or longevity. Will people be paid based on organizational loyalty/tenure, or on performance in their jobs?
Skill- or competency-based pay. Competencies involve the individual’s level of knowledge in a particular area, while skills involve the ability to apply that knowledge set in that field.
At, above, or below the market. How will the organization’s pay levels compare to other firms’?
Wage compression. Changes in starting salary and the labor market can lower the pay differential between long-term and newly hired employees, potentially causing dissatisfaction among long-term workers.
Pay secrecy. How hard will the organization work to keep pay levels and possible discrepancies a secret? Pay secrecy may hide actual wage inequities from employees, but it has the potential to create dissatisfaction and demotivation.
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A. minimize the failure to detect a material misstatement due to nonsampling risk. B. reduce the level of tolerable misstatement to a relatively low amount. C. eliminate the cost of training auditors in the proper use of sampling techniques. D. measure the sufficiency of the evidential matter obtained.
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Indicate whether the statement is true or false
Assume that Marsha is indifferent between investing in a city of Destin bond that pays 6 percent interest and a corporate bond that pays 8 percent interest. What is Marsha's marginal tax rate?
A. 50 percent. B. 20 percent. C. 40 percent. D. 30 percent. E. None of the choices are correct.
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Answer the following statement true (T) or false (F)