Essentially Three Pay-Level Strategies Can Be Chosen.Describe These Strategies

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The Answer is High-Pay Strategy- In this strategy,managers choose to pay at higher-than-average levels.The assumption behind this strategy is that you get what you pay for.These managers believe that paying higher wages and salaries will attract and hold the best employees,and that this is the most effective long-range policy.Organizations using this strategy are sometimes called pacesetters.The strategy may be influenced by pay criteria such as paying a living wage or paying on the basis of productivity.Low-Pay Strategy-At the opposite extreme is the low-pay strategy.In this case,the manager pays at the minimum level needed to hire enough employees.This strategy may be used because this is all the organization can pay-the ability to pay is restricted by other internal or external factors such as a limited labor budget or a forecasted decline in sales and profits.Comparable-Pay Strategy -The most frequently used strategy is to set the pay level at the going wage level.The wage criteria are comparable wages,perhaps modified by cost-of-living or purchasing power adjustments.For example,the Federal Pay Comparability Act of 1970 limits federal government compensation to the comparable wage paid in the private sector at the time.This going wage is determined from pay surveys.Thus,the policy of a manager following this strategy is to pay the current market rate in the community or industry,±5 percent or so.

Essentially Three Pay-Level Strategies Can Be Chosen.Describe These Strategies

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