assignment 5[1]

assignment 5[1] - Assignment #5 1) Two equity...

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Assignment #5 1) Two equity considerations that are relevant in this case are external and internal equity. External equity occurs when pay is relatively equal to what other companies are paying for similar work. External factors that determine wage include conditions of the labor market, area of wage rates, cost of living, collective bargaining and legal requirements. (Dragoni, L) In the case of State Bank, the wages of bank tellers that work for State Bank are much higher than those of Banks 1, 2, and 3. This was found in the results of the wage survey, which exposed that 23 State Bank tellers were making an average of $22 per week more than tellers at other banks. The wage survey also found that State Bank employees that were not tellers earned wages similar to those of Banks 1, 2 and 3. If tellers from Banks 1, 2, and 3 were to see these results, they may decide to leave their job and try to work for State Bank. State Bank non-teller employees would want to leave State Bank and work at Bank 1, 2, or 3 in order to work for a company that compensated its employees fairly. Internal equity is when pay for different jobs within an organization is perceived to be appropriate and fair. Internal factors that determine wage include the compensation strategy of the organization, worth of job, employee’s relative worth, and the employer’s ability to pay. (Dragoni, L) The internal equity of State Bank is not equal. As previously stated, the results of this wage survey displayed that State Bank tellers were earning an average of $22 a week more than other banks, and that all other employees were paid similar wages to those of Banks 1, 2, and 3. This means that tellers were regularly paid
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This note was uploaded on 02/22/2012 for the course AG 2373 taught by Professor Staff during the Fall '10 term at Texas State.

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assignment 5[1] - Assignment #5 1) Two equity...

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