1. Explain the topic in detail
2. What makes it interesting
3. Use examples to show how it can impact you or your peers/co-workers

Equity theory suggests that social comparisons are an important influence on how employees evaluate their pay. Employees make external comparisons between their pay and the pay they believe is received by employees in other organizations. Such comparisons may have consequences for employee attitudes and retention. Employees also make internal comparisons between what they receive and what they perceive others within the organization are paid. These types of comparisons may have consequences for internal movement, cooperation, and attitudes (like organization commitment). Such comparisons play an important role in the controversy over executive pay, as illustrated by the focus of critics on the ratio of executive pay to that of lower-paid workers. Pay benchmarking surveys and job evaluation are two administrative tools widely used in managing the pay level and job structure components of the pay structure, which influence employee social comparisons. Pay surveys also permit organizations to benchmark their labor costs against other organizations. Globalization is increasing the need for organizations to be competitive in both their labor costs and productivity. The nature of pay structures is undergoing fundamental changes in many organizations, including the move to fewer pay levels to reduce labor costs and bureaucracy, and a shift by some employers from paying employees for narrow jobs to giving them broader responsibilities and paying them to learn the necessary skills. How a new compensation program is decided on, designed, implemented, and communicated is perhaps just as important as its core characteristics