Chapter 6学习课件.pptVIP

How does management decide who will get paid $12.65 an hour and who will receive $325,000 per year? The answer lies in compensation administration: the process of determining a cost-effective pay structure that attracts and retains competent employees, provides incentives for hard work, and ensures that pay levels will be perceived as fair. The primary determination of pay is the kind of job an employee performs: that is, the higher the skills, knowledge, and abilities—and the greater the authority and responsibility—the higher the pay. Other factors which influence employee compensation ar