Please read Chapter 9 Case Study #2 on pages 431 – 432.
In your first post please address the following:
1.
Why is it important for pay to be externally fair?
Having externally fair pay helps a company have a lower rate of turnovers and generate
a positive morality between employees that in turn become committed with their work
and provide a better service. Other reasons to maintain externally fair pay include the
following:
-
Provides a competitive edge over other companies.
-
New talents become interested.
2.
Why is it important for pay to be internally fair?
It is very important to have internally fair pay since having an unfair internal pay may
lead to lawsuits. Most importantly, employees must feel that fair payment is practiced,
this will create a sense of belonging which in turn generate a higher level of
effectiveness and productivity within the organization.
3.
What should Costa Vida’s compensation strategy look like?
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