Compensation: Chapter 7 & Chapter 8

Pay level (formula)

Base + Bonuses + Benefits + Value of stock holdings / number of employees

Bourse markets

Haggling over the terms and conditions until an agreement is achieved

What shape external competitiveness?

Labor market, product market factors, and organization factors

Labor cost (formula)

Pay level x Number of employees

Pay level

Referes to the average of the array of rates paid by an employer

External competitiveness

Refers to the pay relationships among organizations - the organization's pay relative to its competitors

Quoted price markets

Stores that label each item's price or ads that list a job opening's starting wage

Marginal product of labor

The additional output associated with the employment of one additional person, with other production factors held constant

Marginal revenue of labor

The additional revenue generated when the firm employs one additional person, with other productions factors held constant.

Pay forms

The various types of payments, or pay mix, that make up total compensation