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External competitiveness focuses on pay comparisons outside the organization. It refers to the pay relationships among organizations—an organization’s pay relative to its competitors. External competitiveness involves making decisions in two areas: Pay Level and Pay Mix.

To achieve the objectives stipulated for its pay system, an organization must properly position both the pay level and the pay mix relative to its competitors.

• Research an article on either the pay level of pay mix that an organization has relative to a competitor.
• Summarize the key points of the article and share it with the class.
• Identify the most important point that you take away from this article. Explain why is this point important to you?