Question Detail

IRP 321 Compensation Management policies Objective Question
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Question

How is 'external relativity' achieved in compensation management?
Options
A By establishing internal relativities through job analysis and job evaluation.
B By ensuring that all employees receive equal pay regardless of job role.
C By paying attention to market rates to attract and retain quality staff.
Correct Answer
D By reducing conflicts in the workplace through fair internal processes.
Correct Answer

Option C is the correct answer.

Detailed Explanation

Page 22 states: 'Thus, external relativity is achieved when the organisation pays attention to market rates so that the organisation can attract and retain good quality staff from the external labour market.'

Hint

Think about how an organization remains competitive in the broader talent pool.

Question Info

Course: IRP 321
Topic: Compensation Management policies
Type: Objective
Difficulty: Not specified
Question 56 of 59
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