Chapter 3: Internal Alignment What is internal alignment? The pay relationships among different jobs/skills/competencies with a single organization (internal equity) What is a pay structure? What should it do (support strategy, workflow, be fair, motivate behavior)? Pay structure —refers to the array of pay rates for different work on skills within a single organization. The number of levels, the differentials in pay between the levels and the criteria used to determine those differences describe the structure. o Support the organization strategy o Support the workflow The process by which goods and services are delivered to the customer o Motivate behavior toward organization objectives “Line-of-sight” • Employees should be able to “see” the links between their work, the work of others, and the organization’s objectives. Fair to employees Fairness—procedural justice (voice, etc.), distributive justice (equity, etc.), interactional justice Procedural justice o Fairness of the process by which a (pay) decision is reached Distributive justice o Fairness of the results/outcomes of the process Interactional justice o Interpersonal justice —the degree to which people are treated with politeness, dignity, and respect o Informational justice —the explanations provided to people that convey information about why procedures were used in a certain way or why outcomes were distributed in a certain fashion How does procedural justice affect perceptions of pay?
You've reached the end of your free preview.
Want to read all 3 pages?
- Fall '12
- Management, Distributive justice, Organization Factors