MGMT 494 Ch.8 Study Guide - Chapter 8 Designing Pay Why...

Chapter. 8 Designing Pay
Why Conduct a Salary Survey
- Adjust pay level – How much to pay?

o Labor costs
- Total compensation system
o Base pay, total cash, stock options, and benefits
- Specific pay data on incumbents in jobs under study
Exhibit 8.9: Advantages & Disadvantages of Measures of Compensation
Interpreting Survey Results
- No single best approach
- Verify data
o Check accuracy of job matches
 If not exact match can use survey leveling
o Check for anomalies
 Does any one company dominate?
 Do all employers show similar patterns?
 Outliers?
o See Exhibit 8.11
- Statistical analysis (see Exhibit 8.13)
o