Chapter Three: Defining Internal Allignment

Internal Alignment

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Terms in this set (11)

Internal Alignment

pay relationships among different jobs/skills/competencies. Supports organization strategy. Supports work flow-process by which goods, and services are delivered to the customer. Motivates behavior

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

Job-based Structure

rely on the work content

Person-based Structure

shift the focus to the employee- skills, knowledge, or competencies and their usage for a particular job.

Tailored Couple

adopted by organizations with loss-cost, customer focused business strategy. Has well designed jobs with detailed steps or tasks. Very small pay differentials among jobs

Loosely Coupled

require constant innovation. pay structures are more loosely linked to the organization to provide flexibility

Egalitarian Structures

all employees are valued equally. Advantages: fewer levels, smaller differentials. Disadvantages: equal treatment can mean more knowledgeable employees feel overpaid

Hierarchical Structures

value the differences in work content, skills, and contributions. Include detailed descriptions of work done at each level.

Effects of Various Structures: Equity Theory

fairness. people compare the ratio of their own outcomes to inputs with that of others. employees judge fairness by comparing jobs similar to their own, their job to others at the same employer, their pay against external pay levels

Effects of Various Structures: Tournament Theory

motivation and performance. greater the differential between your and your boss's salary, harder you work. does not directly address turnover