Problem:
Describe the relevant market for Lowe's Home Improvement Center as it attempts to set pay rates in your local community. Based on your experience would the pay rates at the local convenience store, supermarket, bank, Wal-Mart, Home Depot, or any other store at the mall be part of the relevant market for Lowe's as it seeks to set pay levels? Will your answer differ when you consider other positions at Lowe's, including cashiers, customer service representatives, the accountant working at Lowe's regional office, or the corporate vice-president for marketing? What factors should be considered when setting these pay levels? Next, consider wage and salary surveys. What information is important in assessing the value of a survey? How do you judge survey reliability? How should an organization determine how much weight to give any survey? Discuss how wage surveys provide information needed to recruit, motivate, and retain qualified employees.