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Compensation Management
Compensation Management
Case 11.1. Compensation Management: How Does Wage Compression and Pay Secrecy Affect Employee Motivation?

Marie was the vice-president of human resources for Envelope City, which is a small manufacturing company that makes envelopes for the business market. The company has been in existence for almost 100 years. But there are some problems that can occur with being such an old business. For example, the organizational philosophy on wage compensation most likely was set many years ago when the economic, technological, and social conditions of the country were much different than they are today.

There are seven basic issues that make up the organizational philosophy on compensation. First, Envelope City has to make an honest assessment of how much it can afford and is ...

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