CRM 200 Lecture Notes - Lecture 3: Workflow, Organizational Architecture, Loose Coupling
3 May 2018
School
Department
Course
Professor
Lecture 3 – chapter 3 - Defining Internal Alignment
Overview – strategic polices part of the pay model
• Defining internal alignment
• external competitiveness
• employee contributions
• managing the system
Defining internal alignment:
Common bases for today’s pay structure:
•
(1) the content of the work
• (2) the skills and knowledge required to perform it
• (3) its relative value for achieving the ogaizatio’s objectives
Organizational structures
• Top down mgt approach
o Many levels and hierarchical communication channels and career paths
o Highly specialized jobs with narrowly defined job description
o Focus on independent performances
o Banks, schools etc
• Decentralized mgt approach
o Few levels and multi directional communication
o Broadly defined jobs with general job description
o Emphasis on teams and on product development
o Apple, because if the designer needs to go through all the steps, by the time that
it comes out, it will no longer be competitive in the market
o Slow down time to market
Internal Alignment
• Internal Alignment (Internal Equity):
o refers to the pay relationships among different jobs/skills/competencies within a
single organization;
▪ (i.e. not between an industry, but rather inside the one specific
organization)
• Structure needs to:
o Supports Organization Strategy
▪ Company has goals, objectives, plans, etc., and the internal structure will
allow it to flow effectively
o Supports Workflow
▪
Workflow: the process by which goods and services are delivered to
the customer
▪ How things flow from one level to the other
o Motivates Behaviour
▪
Line-of-Sight = the ability for an employee to see the linkage between what he
does and the ogaizatio’s strategic
goals;
find more resources at oneclass.com
find more resources at oneclass.com
• should be able to see or understand links between their work, the
work of others, and the ogaizatio’s objectives
▪
Structure must be fair to employees
Job- & Person-Based Structures
• A job-based structure relies on the work content – tasks, behaviors, responsibilities.
o Tied to the job description (i.e. what the position entails)
• A person-based structure shifts the focus to the employee.
o The skills, knowledge, or competencies the employee possesses and if they are
used in the job.
o Ties to the job specification
What Shapes Internal Structures?
External Factors
• Economic Pressures:
o Marginal productivity says that employees pay use value.
o
Supply and demand for both labor and products or services affect internal pay
structures.
• Government Policies, Laws, and Regulations:
o
The Equal Pay Act and the Civil Rights Act require eual pay for equal
ok.
o Legislation aims at differentials with the liig age.
• External Stakeholders:
o Unions, stockholders, and political groups have a stake in pay structure.
o Unions seek smaller pay differences and seniority based promotions.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Lecture 3 chapter 3 - defining internal alignment. Overview strategic polices part of the pay model: defining internal alignment, external competitiveness, employee contributions, managing the system. Common bases for today"s pay structure: (1) the content of the work (2) the skills and knowledge required to perform it (3) its relative value for achieving the o(cid:396)ga(cid:374)izatio(cid:374)"s objectives. Includes detailed descriptions of work done at each level. Only motivate those who are close to the spot: differentials: the bigger the better, does not directly address turnover, example: players perform better where prize differentials are sizeable. Institutional model: copy others and conform: copy others and conform, o(cid:396)ga(cid:374)izatio(cid:374)s use (cid:862)(cid:271)est p(cid:396)a(cid:272)ti(cid:272)es(cid:863), what aligns with the strategy of one organization may not align with that of another. Which structure fits best: supports organization strategy, supports how the work is organized and, moti(cid:448)ates e(cid:373)ployees" (cid:271)eha(cid:448)iou(cid:396)s to(cid:449)a(cid:396)d o(cid:396)ga(cid:374)izatio(cid:374) o(cid:271)je(cid:272)ti(cid:448)es. Consequences of internally-aligned pay structures: supports organization strategy.
