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CHAPTER 7- Defining Competitiveness (What Shapes External Competitiveness?…
CHAPTER 7
- Defining Competitiveness
External Competitiveness
Pay Level
Pay Mix
Objectives
Control costs and increase revenues
Attrract and retain employees
What Shapes External Competitiveness?
Product market factor
s
Degree of competition
Level of product demand
Organization factors
Industry,strategy,size
Individual manager
Labor market factors
Nature of supply
Reservation wage
Human capital
Nature of demand
Efficiency wage
Sorting & signaling
Compensating differentials
Job competition
Competitive Pay Policy Alternatives
Lead pay-level policy
Lag pay-level policy
Pay with competition policy (Match)
Consequences of External Competitiveness
Fairness
Compliance
Efficiency