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Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.

Copyright © 2005 Pearson Education Canada Inc.

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.

Copyright © 2005 Pearson Education Canada Inc.

Exhibit 11.14 Factors That Influence Compensation and Benefits

Sources: Based on R.I. Henderson, Compensation Management, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1994), pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1

Level of

Compensation

and Benefits

Employee’s Tenure

and Performance

Size of

Company

Kind of

Job Performed

Company

Profitability

Kind of

Business

Geographical

Location

Unionization

Management

Philosophy

Labour- or

Capital-Intensive

How long has employee

been with company and

how has he or she performed?

Does job require

high levels of skills?

What industry is job in?

Is business unionized?

Is business labour- or

capital-intensive?

How large is the

company?

How profitable is the

company?

Where is organization

located?

What is management’s

philosophy toward pay?

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