Which compensation principle means that employees receive fair pay compared with others performing jobs of similar value within the same organisation?
Correct answer: A. Internal equity
- A. Internal equity
- B. External competitiveness
- C. Individual incentive
- D. Pay compression
Explanation
Internal equity compares the value and pay of jobs within one organisation. External competitiveness compares an organisation's pay with rates offered by other employers.
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About Human Resource Management
Human resource management deals with acquiring, developing, rewarding and retaining employees within an organisation. It includes job analysis, recruitment, selection, training, performance appraisal, compensation, career planning, labour relations and workplace discipline. Recruitment attracts applicants, while selection evaluates them and chooses the most suitable candidate.
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