Week 9: Careers and Hierarchies

Question 1

pay compression

Answer 1

Pay compression is the situation that occurs when there is only a small difference in pay between employees regardless of their skills or experience.

Pay compression is the result of the market-rate for a given job outpacing the increases historically given by the organization to high tenure employees. Therefore, newcomers can only be recruited by offering them as much or more than senior professionals.

prevents sabotage & excessive credit-claiming under relative compensation. important for cooperation-intensive environments

Question 2

neutral competence

Answer 2

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