Question

In deciding how much—and how—to pay employees, an organization has three primary concerns:

Answer 1

When deciding how much and how to pay employees, an organization has three primary concerns: equity, effort, and compensation.

Step-by-step explanation:

When deciding how much and how to pay employees, an organization has three primary concerns:

1. Equity: people should be rewarded based on their skills, qualifications, and experience, ensuring fairness in compensation.
2. Effort: people should be rewarded according to the effort they expend in their work activity.
3. Compensation: people should be rewarded according to the costs they incur in their work activity.

For example, individuals with talents and skills that are in high demand tend to earn higher wages due to the competition in the workforce. Moreover, in times of high unemployment, businesses can maintain or increase profits by not increasing workers' wages. It is important for organizations to consider these factors when determining employee compensation.