If an organization's compensation plan is competitive with other similar organizations', they are said to have:
A) internal equity
B) external equity
C) merit
D) comparable worth

Question

Quizplus · Accepted Answer

External equity refers to the organization's pay being competitive with the pay offered by other similar organizations in the market. This helps to ensure that the organization is able to attract and retain talented employees. Internal equity, on the other hand, refers to ensuring that employees are paid fairly within the organization based on job responsibilities and qualifications. Merit refers to rewarding employees based on their performance, while comparable worth is the concept of ensuring that jobs that require similar skills and responsibilities are paid equally regardless of gender or race.

If an Organization's Compensation Plan Is Competitive with Other Similar