T3: Internal Alignment - determining the pay structure Flashcards
What is Internal Alignment? (def)
Internal alignment refers to pay relations among different jobs or skills in the company.
IMPT - The r/s that for a pay structure for IA should…(3)
- support the org strategy
- Support the work flow
- Motivate behaviour towards org objectives
What is Pay structure?
Pay structures refers to the array of pay rates for diff work or skills within an org.
IMPT- An internal pay structure can be defined by…(3)
- No. of levels of work
- Pay differentials between the levels
- Criteria used to determine those levels and credentials
IMPT- What is 1. Number of Levels
- pay structure is hierarchical, based on no. of levels and reporting r/s
- Some more hierarchical multiple levels, some more compressed w few levels
IMPT- What is 2. Differentials
- The pay diff among levels
- Intention of differentials is to motivate ppl to strive for promotion to a higher-paying level
IMPT- What is 3. Criteria (Content and Value)
- content refers to the work performed in a job and how it gets done
- value refers to the worth of the work; its relative contribution to the org objectives
Jobs ranked w structure based on content are based on:
- skills required
- complexity of tasks
- problem-solving
- responsibility
What are the two structures (from this thingy idk)
Job-based structure relies on the work content
Person-based structure shifts the focus to the employee
IMPT- External Factors
the four external factors are…
- Economic pressures
- Government policies, laws and regulations
- Stakeholders
- Cultures and customs
(EGSC)
IMPT- Organizational Factors
what are the 6 Org factors?
Strategy Technology Human Capital HR Policy Employee Acceptane Cost Implications
(STHHEC)
IMPT- The two Strategic choices in Designing Internal Structures are..
- Egalitarian - fewer levels, small pay differentials
2. Hierarchical - Many levels, large pay differentials