Cornilia and Janice have similar jobs at different firms.Janice is compensated with higher pay and better benefits than Cornilia,which bothers Cornilia.Cornilia's concern reflects the compensation issue of:
A) job versus individual pay.
B) external equity.
C) internal equity.
D) fixed versus variable pay.

Question

Quizplus · Accepted Answer

Janice's compensation is higher than Cornilia's, indicating that Janice's firm values her position more than Cornilia's firm values her position. This is an issue of external equity, which refers to how an organization's pay rates compare to pay rates of companies in the same industry and region. Internal equity (C) refers to how an organization's pay rates compare to pay rates for similar positions within the same organization. Job versus individual pay (A) refers to whether compensation should be based on an individual's job responsibilities or their individual performance. Fixed versus variable pay (D) refers to the mix of fixed salary and variable pay (e.g. bonuses, commissions) in an employee's compensation package.

Cornilia and Janice Have Similar Jobs at Different Firms