HRM Supplemental Exercises

Click on the following links. Please note these will open in a new window.

First, read “How Facebook Decides an Employee’s Salary by Aine Cain in Business Insider at

Second, watch Why you should know how much your coworkers get paid on TED (8 minutes).

After reading Chapter 11 and the materials above, please address the following questions:

  1. Do you think using a set formula to determine compensation is a good idea? Why or why not?
  2. If you were to create a formula for compensation, what factors would be included?
  3. Is it reasonable to assume most organizations disproportionately reward shrewd negotiators with their compensation structures?
  4. Why does salary transparency make for a better workplace for the employee and for the organization?
  5. Would you be open to sharing salary information with your coworkers? Why or why not?