Assess the circumstances when it would be more
appropriate for an organization to follow the comparative norm strategy
to determine an employees' wage rate, versus the ability-to-pay or the
cost of living strategy.
If a company follow the comparative norm
strategy to decide a worker's salary, the trend is that there is an unreasonable
treatment with employees because using this comparative norm strategy might rather
be subjective. Also using comparative norm strategy may be a reasonable way of
paying workers if an organization will only look at workers work and performance.
Alternatively, if a company will use the cost of living strategy, the trend is
that the workers will not be rewarded properly according to their work and performance
since in this strategy the administration will only look at the workers’