CH 3 DEF INTERNAL ALIGN

Question 1

Common bases of today’s pay?

Answer 1

• the content of the work
• the skills required
• relative to the value of achieving the organization’s objectives

Question 2

What is the pay structure?

Answer 2

an array of pay rates for different work and skills within a single organization
and the levels, the differentials in pay between the levels, and the criteria used to determine these differences determine the structure

Question 3

What is internal alignment?

Answer 3

the relationship between the jobs within a single organization

• the relationship between different jobs inside an organization form
• supports organizational start
  -support workflow
• motivates behaviour

Question 4

What is an internal pay structure defined by ?

Answer 4

1. the number of levels of work (hierachial vs egalitarian)
2. the pay differentials between the level (pay for performance or seniority based)
   3, the criteria used to determine those levels (content vs value)

Question 5

What is job based structure?

Answer 5

looks at the work content -> task, behaviour and responsibilities

Question 6

what is person based structure?

Answer 6

the skills and knowledge of employees

Question 7

What are external factors effecting pay structure?

Answer 7

• culture
• stakeholder
• gov
  -econ

Question 8

What are organization factor

Answer 8

• strat
  -tech
• human capital
• hr policy
• employee acceptance
• cost implication

Question 9

What are internal factors?

Answer 9

• structure
• levels
• differentions and
• criteria

Question 10

what is exchange value?

Answer 10

the wage that is decided between the employer and employee

Question 11

what is use value?

Answer 11

reflects the value of the goods or services labour produces

Question 12

what is the marginal productivity theory?

Answer 12

unless an employee can produce a value equal to the value received in wages, it will be worthwhile for employer to hire that worker

Question 13

what is outsourcing in terms of pay?

Answer 13

pay for outsource employees is based on internal structure of the employer outsourcing rather than the workplace which they are currently working at

Question 14

what is delayering?

Answer 14

eliminating some layers or job levels in the pay structure?

Question 15

what is internal labour?

Answer 15

rules and procedures that determine the pay for different jobs within a single organization

• determine the pay for the different jobs
• allocate employees among these jobs

Question 16

What is employee acceptance based on?

Answer 16

• procedural justice
• distributive justice

Question 17

what is tailored structure?

Answer 17

• pay for well defined job that has relatively small difference in pay

Question 18

what is loosely coupled job?

Answer 18

pay structure for jobs that are flexible and adapatble

Question 19

What is equity theory?

Answer 19

motivation theory stating people compare (internal vs external) ratio of their own outcomes with others

Question 20

Tournament theory?

Answer 20

motivation theory that suggest that differences in pay are more motivating than smaller differences between the top job and the second highest job should be the largest

focused on individual performance

Question 21

Institutional theory

Answer 21

policies based on best practice