Essay on Science: Wage and Pay Levels

Submitted By jessmartinez
Words: 1903
Pages: 8
Open Document
* `CH. 7 External Competitiveness: What does this refer to? The pay relationship among organization… how do they stack up? *Pay Level refers to the average pay paid by employees for the same job. * Take a certain job and create a job survey; you can survey company around your area and your employee range. Price setEx:
Why do we care?* Employers want to control cost and attract employees. *How much we pay has an ability to attract ppl
Why did AT&T and Ma bell have a 99.9% percentile pre 1984 ma bell 99.9% percentile customers
MCI }
Sprint } Competition
What determines external competitiveness?
Bourse ( ppl with specific talents that are in demand, high CEO’S, SPCIAL INDEMAND SKILLS) vs Quoted price(regular pay): ex. Football players, coaches, singers
Market Theory: employers seek to:
Maximize profit:
Human Resource are Interchangeable:
Pay Rates reflect all costs:
No advantage to pay above or below the competition:
When supply and demand cross that sets the market price. You find out your market wage, everyone should pay the market wage.
Look at the marginal product of labor: for additional output associated with employing and additional employee. MPL: What difference btw the first person and second person produces.
Look at the Marginal Revenue of Labor: the additional revenue generated by an additional employee.
Firm: How many to hire? (MARKERT RATE)
You need to stop hiring when a person is not making any revenue for you.
EXPLAIN HOW BASIC ECONOMIC THEROY GETS SET AND WHAT IT TELL THE FIRM: IT SAY THAT THE MAKRET SETS THE WAGE, THE WAGE IS WHERE THE SUPPLY MEETS THE DEMAND, THE ONLY QUESTION THE FIRM NEEDS TO ANSWER IS HOW MANY PPL THEY NEED TO HIGH AT THAT WAGE. THEY DO IT BY LOOKING AT MRL. * Companies have a choice. * Is all HR interchangeable? False it does matter. * Pay Rates reflect all cost? Ex. Microsoft-attracts stock options. We have more then pay rates. Different types of compensation incentives, overhead, benefits.
3 Theory’s base on labor demand, explanations, Labor supply explanations
ORG: 1st. Labor demand: organization says we can pay more or pay less because of this:
Compensating Differentials: ADAM SMITH came up with it, he said that because of something about this job either because where you do it or how is done you need to pay more or less. Ex. Linda and her red arms being a dishwasher at an Italian Restaurant they pay more because of the orange arms. Ex. Oil rigs: pay more because it is a dangerous job, even if you are an accountant. You need to pay more because of the negative aspect of this job.
Efficiency Wage Theory: AT&T was paying 99.9% because they thought they were getting the cream of the crop. You can attract the best, keep the best , you need fewer supervisors (lower cost), higher productivity ( work harder + better) you can pay more and get higher productivity and need less ppl with a higher wage you are more efficient. Linda( YES, you can attract the best if you have a good high ring process, do you keep the best yes, lower supervision depends on the person, higher productivity (do ppl work higher because they are paying more it will only last only so long) need for fewer workers maybe. )
Signaling Theory: the company is paying more or less to signal the importance of a job. Ex. P&G pays more to marketing to signal what is important, AT&T pays 99.9 percentile to engineers signal what is important to them.
(Potential Employees) 2ND Labor Supply:
Reservation Wage: we all have a bottom line minimum, a lot of the time they come from what we hear. The market might set the wage but if they ppl has a higher reservation wage we need to accommodate so we can get ppl . ( I should get pay more because I wont go for less than that)
Human Capital Theory: because it differences in what individuals can offer the employers, they expect different wages, the person feels like the deserve more. ( I deserve more)
Job
Show More

Related Documents: Essay on Science: Wage and Pay Levels

Wildlife Biologist Research Paper

Survey, under the U.S. Bureau of the Interior, expresses that researchers who work in natural life science are prepared in extreme life science, and additionally zoology, organic science, chemistry and mathematics. Most businesses, for example, the U.S. Geographical Survey and the United States Department of Agriculture Forestry Service, require no less than a four-year certification for passage level positions. The U.S. Geographical Survey expects candidates to have no less than nine semester hours…

Words 983 - Pages 4

Chapter 6 Essay

instantaneous (f = 1), then all spells of unemployment would be brief, and the natural rate would be near zero.  There are two reasons why f < 1: 1. job search 2. wage rigidity CHAPTER 6 Unemployment 12 Job search & frictional unemployment  frictional unemployment: caused by the time it takes workers to search for a job  occurs even when wages are flexible and there are enough jobs to go around  occurs because  workers have different abilities, preferences  jobs have different skill requirements…

Words 2031 - Pages 9

Gender Wage Gap Myth

above is widely known throughout the country. Some would argue that the wage gap is a myth supported by inaccurate studies and was created to further the agenda of the left. Others argue and agree that the wage gap is real and exists in the modern-day economy. While both sides of the debate present valid points, the issue of wage gap is blatantly present and is supported with factors such as gender and race. The gender wage gap is not a myth. According to an article written by Eric Morath in The…

Words 1710 - Pages 7

Scientist: Medical Laboratory Technologists Essay

------------------------------------------------- Summary Clinical laboratory personnel examine and test body fluids and cells. Quick Facts: Medical and Clinical Laboratory Technologists and Technicians | 2010 Median Pay | $46,680 per year $22.44 per hour | Entry-Level Education | See How to Become One | Work Experience in a Related Occupation | None | On-the-job Training | None | Number of Jobs, 2010 | 330,600 | Job Outlook, 2010-20 | 13% (About as fast as average) | Employment…

Words 2414 - Pages 10

Descriptive Statistics Final Paper Wages and Earners

Descriptive Statistics Paper Tomika Coleman, Antoinette Deleon, Scott Koerning, Alex Lopez RES?341 December 20, 2010 Elaine Raby Descriptive Statistics Paper The wages and wage earners data reports experienced a disparity between men and women. There are multiple reasons why wage disparities exist between men and women. The research conducted by the team will determine why these disparities exist. This paper originates on information of data coming together between both groups. The central…

Words 4287 - Pages 18

Raising Minimum Wage In America

Raise The Minimum Wage When there are millions of Americans living at or below the poverty line, something has to be done. Billion dollar companies and businesses that employ workers, and pay them low wages is hurting the economy. The reality is, unless the minimum wage is raised, the cycle will only continue. The economy will suffer greatly and the people of America will feel the impact. With higher minimum wages in place, the entire country does better and, therefore, the minimum wage should be raised…

Words 2004 - Pages 9

Optometry History

In college, they will be expected to take a lot of biology, anatomy, physics, some chemistry, and some math. Southern College of Optometry in Memphis also offers higher level classes that will help their experience and possibly increase their pay in the future.The after the Bachelor's degree, they will have take take the optometry Admissions Test to see if the optometrist qualifies to move onto a optometry school(“Optometry”). If the optometrist qualifies…

Words 1037 - Pages 5

Gender Wage Gap Analysis

It does take account for differences in occupations, positions, education, job tenure, or hours worked per week. The video also address the wage gap in the case of doctors. Christina Hoff Sommers gives this example of Gender wage gap. She states that it may seem that female physicians are victims of wage discrimination,where they earn 165k and male physicians earn 221k. Sommers believe the reason for this is “women are far more likely than men to enter lower paying specialties…

Words 1046 - Pages 5

Gender Pay Gap

numbers. At this time, the government urged employers to pay both genders equally. Most companies did not adhere to these urges. In 1963, congress passed the Equal Pay Act, which made it illegal to pay women less than men solely based on their sex. Since that time, the public, academics, and politicians have widely discussed equal pay between males and females. Some fight for equality while others insist the problem stretches beyond equality. The pay gap impacts us every day as studies evaluate workplaces…

Words 1355 - Pages 6

Inmate Labour In America Research Paper

extraordinarily low wages or for free, or, alternatively, face unpleasant consequences if they refuse to do so. While some believe that this is simply a consequence of being incarcerated and/or they are getting what they deserve, inmates should be entitled to a reasonable wage and the right to refuse to work for anything less than that or,…

Words 1055 - Pages 5