2. internal alignment

Question 1

what is internal alignment?

Answer 1

also known as internal equity, it refers to the pay relationship between the jobs or skills or competencies within a single organization

Question 2

what does pay structure refers to?

Answer 2

the different pay rates for different work or skills within a single organizations

Question 3

how can pay structure be defined by?

Answer 3

• number of levels of work
• pay differentials between the levels
• criteria or base used to determine those levels and diferentials

Question 4

what is the pay nature for number of levels?

Answer 4

hierarchical

Question 5

what is pay nature - number of level based on?

Answer 5

• number of levels
• shows reporting relationships
• must be consistent with the compensation strategy and fit within the context of the total compensation system/program

Question 6

what is the pay difference among levels called?

Answer 6

differentials

Question 7

how will higher pay come about?

Answer 7

• work that requies more skills and knowledge
• performed in unpleasant work conditions
• work that add more value to the company

Question 8

what can be paired with different pay level policies?

Answer 8

percent differetials

Question 9

what are the two components under the criteria?

Answer 9

content and value

Question 10

what is the content in criteria referring to?

Answer 10

work performed in a job and how it gets done

Question 11

what is content based on?

Answer 11

a structure based on content ranks jobs based on skills required, complexity of tasks, problem solving and/or responsibility

Question 12

what does value mean?

Answer 12

the worth of the work

Question 13

what is value based on?

Answer 13

a structure based on value focuses on the relative contribution of the skills, tasks and responsibilities

Question 14

what are the external factors?

Answer 14

economic pressures, government policies, law and regulations, stakeholders, cultures and customs

Question 15

what is economic pressures?

Answer 15

supply and demand for both labour and products or services

Question 16

what are the examples for government policies, laws and regulations?

Answer 16

minimum wages act and national wage council

Question 17

what are the external stakeholders?

Answer 17

• unions, stockholders, and political groups have a stake in pay structure

Question 18

what do cultures and customs play in internal structures?

Answer 18

cultural factors pplay a role in shaping pay structure

Question 19

what is required in effective organizational strategy?

Answer 19

an effective organization strategy may require an aligned, yet adaptable structure

Question 20

what is human capital?

Answer 20

• the education, experience, knowledge, abilities, and skills required for the job
• a major influence on internal structures
• greater the added value, higher the pay

Question 21

what is required in producing the good and services

Answer 21

the organization design, the work and the skills/knowledge required to perform their work

Question 22

what is outsourcing specialist?

Answer 22

based on the internal structure of their home employer

Question 23

what is delayering?

Answer 23

• cut an entire level of work

- cut unnecessary noncontributing work and changes remaining jobs’ structure and value

Question 24

what does internal labour markets refers to?

Answer 24

the rules and procedures that determines the pay for different jobs within a single organization and allocate employees among those different jobs

Question 25

what is hierarchical internal structures?

Answer 25

more job grades, more salary range

Question 26

what is the egalitarian internal structures?

Answer 26

fewer job grades, fewer salary ranges

Question 27

how are employees being valued in egalitarian?

Answer 27

they are valued equally

Question 28

what are the advantages of egalitarian?

Answer 28

there are fewer levels and small diferentials

Question 29

what are the disadvantages of egalitarian?

Answer 29

equal treatment can mean more knowledgeable employees feel underpaid

Question 30

how is egalitarian related to greater performance?

Answer 30

close collaboration and sharing of knowledge are required

Question 31

how will egalitarian impact the internal structure on performance?

Answer 31

affected by pay model, level and employee performance

Question 32

what are the differences comparing hierarchical and egalitarian?

Answer 32

values the differences in work content, skills and contribution and includes detailed descriptions of work done at each level

Question 33

what will be the result afer using the hierarchical structure?

Answer 33

greater performance when work flow depends on individual contributors

Question 34

how will hierarchical affect the employees?

Answer 34

higher performers quit less when the pay is based on performance rather than seniority and people have knowledge of the structure

Question 35

what are the consequences of an interally aligned structure?

Answer 35

undertake training, increase experience, reduce turnover, facilitate career progression, facilitate performance and reduce pay-related grievances and work stoppages