Explain how the Klaas and McClendon (1996) research may assist managers in establishing a pay policy.


This assignment focused on the conceptual reasoning that leads companies to pay differently from the market.  (A 1½-page response is required.)

  1. Using Exhibit 7.8 from your      text as a framework, specify the reasoning behind the decision to 1) lead      and 2) lag the market rate of pay; include relevant research findings.       Address the issue of whether the lead/lag decision should be applied      to all jobs within the organization or if different policy decisions      should be reached for different categories of jobs.
  2. Explain how the Klaas and      McClendon (1996) research may assist managers in establishing a pay      policy.

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