Part $1$: Embedded Controls and Open versus Closed Pay Systems

Controls on managers' pay decisions come from two different aspects of the compensation process: the design of the techniques and the formal budgeting process. Design techniques are important because they help the organization attract and retain employees.

How do embedded controls affect managerial pay decisions? Select one type of embedded control, indicating how it can help control costs.

Research has shown that employees in open pay systems misperceive the actual pay system as much as employees in closed pay systems. There is also research that employees in companies with open pay policies have higher satisfaction with their pay than in organizations with closed policies. What conclusions can you draw from these observations?

Part $2$: Outsourcing

As a compensation manager, you should be concerned about managing labor and salary costs. For these managers and their employees, the option of outsourcing will continue to demand attention in the continuing movement towards a global economy. Managing these costs is important because as a compensation manager, your task is to ensure pay is aligned with the budget.

Use your favorite search engine to search for articles on outsourcing.

Did any of the articles influence your position on outsourcing and the advantages or disadvantages it provides for a compensation strategy?

How does the structure of the compensation function relate to the objectives of the organization?

Please relate anything useful from the web field trip as it relates to this issue.