Professional Documents
Culture Documents
OBJECTIVES WEEK 3
1. Explain why internal alignment is important, and how to evaluate it. 2. Discuss the three (3) key factors that define internal pay structures. 3. Discuss the pros and cons of egalitarian and hierarchical structures and how they relate to strategy. 4. Discuss the impact of internal pay structures on efficiency, fairness, and compliance in the pay system. 5. Explain the importance of job analysis, its uses, and its relationship to internal alignment. 6. Discuss the key difference(s) between job-based, skill-based and competency-based pay structures. 7. Describe the key criteria to judge job analysis.
Economic Pressures
Government
ORGANIZATION FACTORS:
Technology
Strategy Human Capital
DEFINITION
Internal
alignment, often called internal equity, refers to the pay relationships among different jobs/skills/competencies within a single organization.
3 components Levels flat or lots of steps Differentials big steps in pay Criteria jobs/skills/competencies basis for levels - merit, seniority implications
by Number of levels of work Pay differentials between the levels Criteria or basis used to determine those levels and differentials
GM
Principle advisor
Advisors
DIFFERENTIALS
The
Working conditions
Valued addition to the company Few and small differentials (levels)
Value
the worth of the work; its relative contribution to the organization objectives
Use value the value of goods or services an
employee produces in a job Exchange value whatever wage the employer and employee agrees on for a job
structures relies on the work content tasks, behaviors, responsibilities Person-based structure shifts the focus to the employee
Skills, knowledge, or competencies the employee possesses Whether or not they are used in the particular job
labor markets
Rules and procedures that Determine pay for different jobs within a single organization Allocate employees among those different jobs
Employee
acceptance
Pay
structures change
Change-and-congeal process
versus hierarchical
Tailored
Well designed jobs with detailed steps or tasks Very small pay differentials among jobs
Loosely coupled
Hierarchical
Many levels Large differentials Person or job Supports: Close fit Individual performers Performance Opportunity for promotion
Egalitarian
Few levels Small differentials Person or job Supports: Loose fit Teams Equal treatment Co-operation
tournament, where the prize differentials are larger salary and the bosss, harder he/she will work takes-all
of internal structures depends on context in which they operate More hierarchical structures are related to greater performance when the work flow depends on individual contributors High performers quit less under more hierarchical systems when:
Pay is based on performance rather than seniority When people have knowledge of the structure
STOCKTAKE
Internal
alignment counts because it affects the incentives and sense of fairness of staff
These
in turn affect organisational outcomes such as strategy, workflow, and staff behaviours
HR
behaviours include turnover, willingness to develop, and to take grievances , steal and other acts of organisational deviance Alignment decisions concern:
MANAGING INTERNAL ALIGNMENT: INTRO TO JOB ANALYSIS Understand the role of job analysis in remuneration & performance management
Understand
methodologies for job analysis and job evaluation the value of job analysis
Critique
Performance Management
Training Requirements
Stephen Blumenfeld
WHAT DOES A CI
LOOK LIKE?
Example of a critical incident (from www): if a retail assistant comments on the customers appearance and the customer leaves the store angry, the behaviour of the assistant may be judged as ineffective in a fashion company.
identifies the content of jobs that support other HR functions, including rem and performance management
Several
methods exist - usually a mixed approach is more valid and engagement seems as important as methodological precision. Is it a social or mathematical process?
Support