1 19.docx - Chapter 3 Pay structures designed around jobs...

Chapter 3
 Pay structures designed around jobs and job level:
o Employees pay – pay growth over time
o Depends on both nature of job
o Job level – promotion rate
 Internal alignment (internal equity) – pay relationship among different
jobs/skills/competencies within single organization
 1 st issue in strategic approach to pay
o Setting objectives
 2
nd
issue
o Internal alignment, addresses pay relationships inside
organization
 Relationships inside organization form a pay structure that should
support organization strategy, support workflow, and motivate
behavior toward organization objectives
 Pay structure – array of pay rates for different work or skills within
organization
o Number of levels, differentials in pay between levels, and criteria
used to determine differences describe the structure
 Workflow – process by which goods and services are delivered to
customer
 Internal pay structures are part of network of returns
o Design structures that will engage employees to achieve
organization objectives
 Line of sight – structure ought to make clear the relationship between
each job and organizations objectives
 Content – work performed in job and how it gets done