1) In setting up a pay structure, what legal requirements must an organization meet?  Which of these do you think would be most challenging for a small start-up business?  Why?                2

1) In setting up a pay structure, what legal requirements must an organization meet?  Which of these do you think would be most challenging for a small start-up business?  Why?     

2.         In gathering data for its pay policies, what product markets would a city’s hospital want to use as a basis for comparison?  What labor markets would be relevant?  How might the labor markets for surgeons be different from the labor market for nursing aides?           

3.         Why might an organization choose to pay employees more than the market rate?  Why might it choose to pay less?  What are the consequences of paying more or less than the market rate?     

4.         Suppose you work in the HR department of a manufacturing company that is planning to enrich jobs by having production workers work in teams and rotate through various jobs.  The pay structure will have to be adjusted to fit this new work design.  How would you expect the employees to evaluate the fairness of their pay in their redesigned jobs?  In terms of equity theory, what comparisons would they be likely to make?