This is a paper that focuses on how business strategies can affect pay decisions of organizations. The paper requires watching of a strategic video and reading of an article.
How business strategies can affect pay decisions of organizations
Why this assignment?
This assignment is to achieve the goal of our Module 3 learning objectives.“demonstrate an understanding of how business strategies can affect pay decisions of organizations.”. This assignment supports Course Objective 1.
First, watch the video Strategic Fit of HR Practices and Pay Decisions (by Professor Yoon) (Modules > Module 3 > Required Videos). To do this assignment, you need to have a clear understanding of the concept ‘competitive advantage’ and also ‘vertical fit of HRM practices.’
Now read the following article.
In this article, the author does not directly use the words like “competitive advantage” or “vertical fit.”. However, he explains that Walmart pays its employees less than Costco because its business operation model differs from that of Costco. In other words, Walmart pays its employees less because its “competitive advantage” (which translates into its business operation model) differs from that of Costco. And the different business operation models (or competitive advantages) leading to different pay practices. (different pay levels in this case) can be explained by the concept of “vertical fit of HRM practices.”. So, the concepts that you learned in the above video by Professor Yoon can be utilized to some extent to explain why different companies pay their employees differently.
So, now I have researched the pay level of the two jobs, flight attendant and customer service manager, for the two airlines:
Spirit and American. The results are in Table 1 below.
Ensure that the instructor instructs you on the length of the paper. The cover and reference pages are not inclusive. Also, ensure that you reference and cite all the sources you are to use in the assignment.