In order to do a good job determining employee compensation levels,an organisation must balance:
A)internal equity.
B)external equity.
C)both A and B.
D)none of the above.

Question

Quizplus · Accepted Answer

In order to determine fair compensation levels, an organization must balance both internal equity (ensuring that employees are paid fairly relative to their colleagues within the company) and external equity (ensuring that their pay rates are in line with those of comparable positions in the industry or geographic area). Only considering one of these factors could result in either over- or underpaying employees. Therefore, both A and B must be considered.

In Order to Do a Good Job Determining Employee Compensation