T5: External Competitiveness - Determining the pay level

Question 1

What is external competitiveness?

Answer 1

External competitiveness refers to pay r/s among orgs- an orgs pay relative to its competitors

Question 2

What is Pay Level?

Answer 2

the avg of the array of rates paid by an employer

Question 3

What are pay forms?

Answer 3

The various types of pay mix that makes up total compensation

Question 4

IMPT-What are the two objectives of pay level and pay mix?

Answer 4

1. Control Costs

2. Attract and retain employees

Question 5

Impt- What shapes External Competitiveness? (3 factors)

Answer 5

Labour Market Factors
Product Market Factors
Organizational Factors

Question 6

IMPT- Labour Market Factors (2)

Answer 6

Nature of Demand

Nature of Supply

Question 7

IMPT- Product Market Factors (2 w explanation)

Answer 7

Product demand - puts lid on maximum pay level employer can set

Degree of competition - cannot raise prices without loss of revenues in highly competitive markets

Question 8

IMPT- Organization Factors (the four)

Answer 8

Industry/Technology
Company size
People’s Preference
Organisation strategy

Question 9

Other relevant market factors

Answer 9

Occupation, geography an competitors

Question 10

What are the competitive pay policy alts? (6)

Answer 10

1. Pay with Competition (Match Policy)
2. Lead Policy
3. Lag Policy
4. Varying Policies
5. Employer of Choice
6. Shared choice