21. Organizations using differentiation strategies tend to use uniform compensation.
22. Organizations with uniform compensation systems have a greater need for high motivation than organizations with variable compensation practices.
23. A majority of evidence shows that performance increases when high performers are paid more than low performers.
24. Many variable compensation practices fail to motivate because the size of the potential reward is not large enough to influence behavior.
25. Developing employees so they have skills that are unique to the organization is a way to bind employees to the organization without increasing labor costs.
26. To offer competitive pay levels the first thing an organization must do is understand the compensation packages being provided by other organizations.
27. A firm with a Free Agent HR strategy is likely to use uniform compensation in order to attract and keep top performers.
28. Organizations with external labor strategies emphasize the development of long-term relationships as a competitive advantage.
29. Pay level is concerned with how compensation differs among organizations.
30. An individual’s compensation within a pay range is determined by factors such as performance level and experience.