Discussion Identify And Describe How External And Organization Factors

Compensation & benefitsCompensation is a critical concern for (HRM) Human Resource Management that affects and dictates relations between employees and management. It is often one of the principal factors of dispute between employees and employers. In order to provide compensation packages that can be considered solicitous, employers must take into account the devotion of time skill, energy and knowledge that employees exercise in meeting organizational targets (Milkovich, &Wigdor, 1991). Besides a company’s compensation policy, organizational capacity to pay, an employee’s worth, worth of the job and job description are among other internal factors that determine pay structure design. However, external factors such as the supply and demand of labor, prevailing economic conditions, cost of living, governmental control, globalization, legislation, cross sector mobility, and the presence of labor unions also affect pay structure designs (Nyberg, Ployhart, &Moliterno, 2019). Generally, larger companies have higher demand for labor and enjoy considerable market shares. These aspects play an important role in the magnitude of their financial outcomes that ensure such organizations have a better capacity for higher pay of their employees compared to other similarly rankled employees in smaller organizations. However, senior staff are often more learned and experienced as compared to junior