Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the
A) minimum and maximum wages fixed by the government.
B) pay of federal contractors.
C) organization's competitive environment.
D) quality of employees.
E) organization's global reputation.

Question

Quizplus · Accepted Answer

The range within which organizations can make decisions about pay levels is largely determined by their competitive environment. While government wage regulations and the quality of employees can also affect pay decisions to some extent, the organization's competitive environment is the most influential factor in determining the size of this range.

Although Labor and Product Markets Limit Organizations' Choices About Pay