Fundamentals of Human Resource Management 5th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright

Exercise 11

For an organization with operations in three different countries, what are some advantages and disadvantages of setting compensation according to the labor markets in the countries where the employees live and work? What are some advantages and disadvantages of setting compensation according to the labor market in the company's headquarters? Would the best arrangement be different for the company's top executives and its production workers? Explain.