Briefly Explain Each of the Three Main Methods Companies Use

question 40

Essay

Briefly explain each of the three main methods companies use to manage political risk.

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Definitions:

Point Method

A systematic approach in job evaluation that assigns point values to job factors to determine the relative worth of different jobs within an organization.

Internal Equity

The principle of ensuring all employees are paid fairly and equitably within the same organization, based on the value of the work they perform.

Pay Policy Line

A guideline used by organizations to determine the appropriate level of compensation for employees based on their position and job characteristics.

Pay Structure

The organization and hierarchy of different levels of pay within a company, including pay ranges, grades, and progressions.