5.internal influence on compensation system include the age ,size and labor budget of the organization as well as who is involved in making compensation decisions.
6.The pay-level decision compare the firm's pay with multiple external factors.The pay survey is the tool used to help make this decision.
7.The pay-structure decision involves comparing jobs within the organization to determine their relative worth.
8.Determining the worth of a job is difficult because it involves measurement and subjective decisions.Using systematic job evaluation procedures is one way to determine net worth.
9.The four most widely used methods of job evaluation are job ranking, classification, the point system, and factor comparison.
10.The wave curve (or line) illustrates the average target wage for each pay class.
11.Most manager group similar jobs into pay classes or rate ranges.
12.Broadbanding is a new system for condensing rate ranges into broader classification. It allow an employer to create a more flexible compensation program based on individual contributions.
13.People-based pay designs like skilled-based, knowledge-based,and competency-based pay are alternatives to job- based pay that set pay levels on the basis of how many skills an employee has, how much knowledge an employee acquires, etc.