Assignment 2

Question 1

Internal Pay Structure

Answer 1

Made up of the relationships among different jobs inside the organization. Should support the organization strategy, support the workflow and motivate behavior toward organization objectives.

Question 2

Interal Alignment

Answer 2

Often called Internal Equity. Refers to the pay relationships among different jobs/skills/competencies within a single organization

Question 3

Pay Structure

Answer 3

The array of pay rates for different work or skills within a single organization

Question 4

3 Things that Create the Pay Structure

Answer 4

1) Number of Levels
2) Differentials in Pay Between Levels
3) The Criteria used to determine those differences

Question 5

Internally Aligned Pay Structures:

Answer 5

1) Support Organization Strategy
2) Supports Workflow- the process by which goods and services are created and delivered to the customers
3) Motivates Behavior- design the structures so they direct people’s efforts toward organization objectives ( employees who see or understand a link b/t their work and the organization’s objectives are more lilely to work toward those objectives)

Question 6

Content

Answer 6

Refers to the work performed in a job and how it gets done ( tasks, behaviors, knowledge required)

Question 7

Value

Answer 7

Worth of the work

Question 8

Use Value

Answer 8

Reflects the value of goods or services an employee produces in a job

Question 9

Exchange Value

Answer 9

Whatever wage the employer and employee agree on for a job

Question 10

Job Based Structure

Answer 10

Looks at what tasks are done, what behaviors are expected and what responsibilites are expected.

Question 11

Person Based Structure

Answer 11

Shift the focus on the skills, knowledge or competencies the employee possesses, whether or not they are used on the particular job the employee is doing.

Question 12

Organization Strategy

Answer 12

Structures that are not aligned with the organization strategy may become obstacles to the organization’s success

Question 13

Organization Human Capital

Answer 13

A major influence on internal structure is human capital. I.e. Education, experience, knowledge, abilities, and skills that people possess. The stronger the skills the more pay they will command

Question 14

Organizing Work Design

Answer 14

Technology is another crucial organization factor influencing the design of pay structures

Question 15

Overal HR Policies

Answer 15

Amount of pay to tie to a promotion, the nature of promotions and pay differnces must be consistent with what the organization is trying to accomplish

Question 16

Internal Labor Market

Answer 16

Refers to the rules and procedures that determine the pay for different jobs within a single organization, and allocate employees among those different jobs

Question 17

Closely Tailored

Answer 17

contains a high degree of specified detail in the tasks performed ( McFry Maker)

Question 18

Loosely Coupled

Answer 18

Require constant product innovation and short product-to market cycle times and that encourage innovation and agility.

Question 19

Pay Structures should

Answer 19

1.support the way the work gets done
2.fit the organization’s business and
3 be fair to employees

Question 20

Egalitarian Structures

Answer 20

Have fewer levels and smaller differentials between adjacent levels and between the highest and lowest paid workers.

Question 21

Hierarchial Pay Structures

Answer 21

Typically include detailed descriptions of work done at that level and delineate who is responsible for what.
Consisten with a belief in the motivational effects of frequent promotions
Value the differnces in work content, individual employee skills, responsibilites and contributions to the organization

Question 22

Equity Theory

Answer 22

employees judge equity on the basis of comparisons between the work requirements and pay for their own jobs with the work requirements and pay for other jobs in the organization

Question 23

Tournament Theory

Answer 23

Structures with greater differentials at the top have a more positive effect on performance than those with smaller differentials for people at all levels
The pay offered for a higher posistion motivates those at lower levels in the organization to come to work and do their best in order to stay in contention for promotion
the greater the prize to get to the next level the higher the movtivation
Works best when individual performance matters most and where

Question 24

Institutional Model

Answer 24

Copying Others- practices of other firms influence an organization’s pay structure decisions, and this extends itself to internal pay structures that may be adopted