Final answer:
The recommended compensation policy is lag.
Step-by-step explanation:
The type of compensation policy being recommended to the organization is lag compensation.
A lag compensation policy involves paying employees below the market rate for their job positions. In this case, the entry-level factory workers would be compensated 10 percent below market.
On the other hand, the policy also recommends paying engineers 10 percent above market, which is known as a lead compensation policy. However, since the question specifically asks for the type of compensation policy being recommended to the organization, the correct answer is lag.