While Setting Pay Levels Initially, an Organization Has to Balance

question 55

Multiple Choice

While setting pay levels initially, an organization has to balance internal equity and external equity. Here external equity indicates ________.

• A) the amount of growth opportunities the job provides to the employee
• B) the worth of the job to the employee
• C) the worth of the job to the organization
• D) competitiveness of an organization's pay relative to pay elsewhere in its industry
• E) the amount of job satisfaction the job provides to the employee

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Definitions:

Financial Planning

The process of constructing a financial strategy or plan to meet an individual's or organization's long-term financial goals.

Sales Growth

Sales growth is the increase in sales over a specific period, indicating the company's ability to grow its business and expand its market reach.

Retained Earnings

The portion of a company's profits that is kept or retained within the company, rather than being paid out to shareholders as dividends.

Financial Planning Model

A systematic tool or process used by businesses to forecast their financial performance and plan future financial activities.