Reread Exhibit 2.7. Discuss how those values might be reflected in a compensation system. Are these values consistent with “Let the market decide”?
Answer to relevant QuestionsThree tests for any source of competitive advantage are align, differentiate, and add value. Discuss whether these tests are difficult to pass. Can compensation really be a source of competitive advantage? What is the “just-wage” doctrine? Can you think of any present-day applications? How would you decide whether to use job-based or person-based structures? You are the manager of 10 people in a large organization. All of them become very suspicious and upset when they receive a memo from the HR department saying their jobs are going to be evaluated. How do you try to reassure ...What does marginal revenue product have to do with pay?
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