Ch 3 *Janine*DONE

Question 1

What are the common bases for pay structure?

Answer 1

1. Content of work
2. Skills and knowledge needed to perform the work
3. Relative value for achieving the org’s objectives

Question 2

What is internal alignment?

Answer 2

The relationships between the jobs within a single org.

Equity theory: Perception vs. objective measure

Question 3

Job structure should do what?

Answer 3

support and motivate behaviour towards the org’s strategy and workflow

Question 4

What is pay structure?

Answer 4

The array of pay rates for different work or skills within a single org;the number of levels, and the criteria used to determine these differences create the structure.

Question 5

What is workflow?

Answer 5

The process by which goods and services are delivered to the customer

Question 6

Equity theory

Answer 6

my pay for my inputs vs. others pay for their inputs. How employees view the fairness of what they are paid in relation to other employees.

Question 7

How do internal job and pay structures motivate employee’s behaviour?

Answer 7

By providing pay increases for promotions
more challenging work
greater responsibility

Question 8

What is line of sight?

Answer 8

Ability of employee understand the links between his/her work and the co. strategy.

Question 9

What is pay structure?

Answer 9

The array of pay rates for different work or skills within a single org. created through the use of:

1. Number of pay levels
2. Differentials
3. Criteria

Question 10

What is the pay differences between levels called and what is the intention behind it?

Answer 10

Differentials: to motivate people to strive for promotion to a higher paying level.

Question 11

What types of things would qualify for a differential?

Answer 11

KSAs
Work conditions
Value of the job to the company

Question 12

What must companies have before creating a pay structure?

Answer 12

Job structure

Question 13

What is the most common bases for determining internal structures?

Answer 13

Content: tasks, behaviours, KSAs
Value: the relative contribution of a job to the org. objectives.

Question 14

How are jobs ranked in content based structures?

Answer 14

On the bases of skill, complexity of tasks/responsibilities of the job.

Question 15

How are jobs ranked in a value based structure?

Answer 15

On the relative contribution of the skills, tasks and responsibilities of a job to the org.
May include external market pressures or agreed rates through collective bargaining.

Question 16

What is use value of the job reflect?

Answer 16

the value of goods and services an employee produces in a job.

Question 17

What is exchange value?

Answer 17

What ever wage the employer and employee agree on for a job.

Question 18

What does job-based structure look at?

Answer 18

Work contenct:Task, behaviour, responsibilities

Question 19

What does person-based structure focus on

Answer 19

The employee: KSAs, competencies

Question 20

What are the factors that shape internal structures?

Answer 20

1. External factors: ie. economic pressures; govt. policies, laws, regulations; stakeholders; cultures, customs
2. Organization factors: ie. strategy; technology; human capital; hr policy; employee acceptance; cost implications.
3. Internal structure; ie. structure; levels; differentials; criteria.

Question 21

What is marginal productivity theory?

Answer 21

That unless an employee can produce something of value from his/her job equal to the value received in wages, it will not be worthwhile for an employer to hire that employee.

Question 22

What is human capital?

Answer 22

The education, experience, knowledge, abilities and skills that people posses.

Question 23

How are organizations undergoing structural changes?

Answer 23

People who work at an org. are not employees (suppliers, temp staff, contractors)
Delayering: reduce unnecessary work that does not contribute to the org, and enlarge jobs.

Question 24

What are internal labour markets?

Answer 24

Rules and procedures that determine the pay for different jobs within a single organization and that allocate employees to those different jobs - combine external and organizational factors.

Question 25

The internal labour market refer to the rules and procedures that…

Answer 25

1. determine pay for different jobs.

2. allocate employees to those jobs.

Question 26

What are the dominant influences on pay for entry jobs?

Answer 26

External factors.

Question 27

What are the strategic choices among structure options?

Answer 27

Tailored (well-defined jobs; small differentials) vs. loosely coupled (flexible jobs, adaptable, changing)
Egalitarian (Few levels; small differentials - flatter, teams, cooperation) vs. hierarchical (many levels; large differentials, tailored, supports individual performers, opportunities for promotion, more competitive)

Question 28

What is tournament theory?

Answer 28

Effects motivation and performance - how big the difference between pay steps effects how motivated employees to achieve that next step - the bigger the step, the bigger the motivation. - Not good for team work environments

Question 29

What is institutional theory?

Answer 29

Adoption of other company’s pay systems as best practices when they have little fit or value to the other company.

Question 30

What are the consequences of pay structures?

Answer 30

Efficiency
Fairness
Legal Compliance