On the other hand, organizations that focus on external equity enjoys the advantage of attracting and retaining highly qualified employees. Similarly, the rate of staff turnover is extremely minimal as the staffs remain aware that their organization is offering compensation packages, which are streamlined accordingly with the compensation in the market. However, insisting on the external equity bears also some disadvantages. For instance, by focusing on the prevailing market compensation, an organization whose economic state does not support such pay package ends up hurting its operations. Similarly, resentment within the top brass, such as CEO's and other managers may crop due to inequality dictated by the conditions in the market (CCH, Incorporated and Myers, 2003).
It is worth noting that a given organization may resort to choose a definite compensation plan depending on its objectives. For instance, Intel chose internal equity plan which is in accordance to its objective of harmonizing...
human resources. One is determining the levels of pay and benefits within the organization. Most companies are smart enough to understand the value of internal equity, since employees talk to each other, and it is difficult to discriminate internally in terms to pay, by law. Internal equity is practiced most strongly at companies that have strict policies with respect to pay scales. These are typically based on a combination
Riordan Manufacturing: Internal and External Compensation Riordan Manufacturing: External and Internal Equity Compensation Riordan Manufacturers, being a leader in its industry, appreciates the need to meet the needs of its employees through a fair compensation policy - one that equates pay with the value of the task performed, because fair treatment boosts employee performance and morale, and is an effective employee retention technique (Romanoff, Boehm & Benson, n.d.). Internal equity compensation describes
Equity in Human Resource and Management For a Human Resource Department to be successful at what it does, there is a need for the management to put in place policies, regarding rewards system, motivation, job design and equity. Job design, motivation and rewards systems are geared towards increasing the productivity of the employees at the workplace. The objective of having equity in the workplace is to make sure that there is
Business Studies Strengths and Weaknesses of Kraft Foods Kraft Foods is a major U.S. firm that has undergone change in recent years. To assess the firms' current position, as well as look to the potential for future strategies, a common tool is a SWOT analysis. The SWOT analysis examine the firm and its environment, examining influencing factors by looking at the strength, weaknesses, opportunities and threats faced by the firm. This paper
Social equity is a key issue of public administration and forms the basic theme of the 2013 "Social Equity Leadership Conference," in June. This white paper discusses the key goals of the conference based on the conference issue for social equity as global engagement and local responsibility. These are the issue facing social equity among domestic and global public leaders in public and private agencies in the education, immigration,
Kroger's ratios. Then, a comparison company's ratios industry's ratios undertaken. Do discuss ratio measuring, formula calculate amount year period. We utilizing ratios evaluate performance condition company determine areas investigation. Analysis of Kroger Kroger has made intense efforts to improve and consolidate a strong position within the industry and, in some instances, it has managed to advance its condition. However, in order to construct a more faithful and realistic review of the
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