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Introduction
Compensation and benefit management decisions are influenced by a number of environments both inside and outside the organization. These environments are economic, social, organizational, technical, and legal.
This course reviews the first four of these environments in the United States, while DLC Course 15, Federal Employment Laws That Impact Compensation and Benefits, examines the legal environment in-depth.
Overview
Within the economic environment, labor markets have an important impact on compensation and benefits management. Work and workers are part of the social environment and exert a strong influence on how work is shaped in our society.
How an organization is structured will determine its philosophy towards both compensation and benefits.
Organizations may be classified as:
- private for-profit
- public for-profit
- not-for-profit
- government entities
Technological sophistication within an organization can also have a strong influence on its compensation and benefits programs.
We will begin our discussion of the influences on compensation decisions by exploring the economic environment, specifically focusing on labor markets and how they impact compensation and benefits.