Benson Enterprises pays lower salaries than its competitors in ...

[jenna1]

Benson Enterprises pays lower salaries than its competitors in order to control labor costs, especially when the firm's financial condition is weak. Which type of compensation policy is most likely in place at Benson Enterprises?
 
  A) conservative pay policy
  B) market lag policy
  C) economical pay policy
  D) individual rate

Question 2

In a brief essay, describe job evaluation and job pricing.
 
  What will be an ideal response?

[dawsa925]

Answer to Question 1

Answer: B

Answer to Question 2

Answer: Job evaluation is a process that determines the relative value of one job in relation to another. This process determines the value of the job to the company. The primary purpose of job evaluation is to eliminate internal pay inequities that exist because of illogical pay structures. The process of job evaluation results in a job hierarchy. It might reveal, for example, that the job of senior accountant is more valuable than the job of machinist, which, in turn, is more valuable than the job of receptionist. At this point, you know the relative value of these jobs to the company, but not their absolute value. Job pricing results in placing a dollar value on a job's worth. It takes place after evaluation of a job and the relative value of each job in the organization has been determined. HR professionals often rely on compensation surveys to obtain pay rates in companies with which they compete. Then, they often use pay grades and pay ranges in the job-pricing process.