The sociopolitical and cultural systems reduce managers' ability to use pay as a source of competitive advantage.

Question

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Sociopolitical and cultural systems, such as laws and social norms, often set limits on the extent to which companies can differentiate their pay practices for competitive advantage. For example, laws may require equal pay for employees in similar roles regardless of gender or other demographic factors. Social norms may also discourage companies from using pay as the primary means of attracting and retaining talent, instead valuing other factors such as job security or work-life balance.

The Sociopolitical and Cultural Systems Reduce Managers' Ability to Use