MANA 443 Lecture Notes - Lecture 3: Workflow, Social Loafing, Strategic Choice
2 Feb 2017
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Internal alignment, often called internal equity, refers to the pay relationships among different jobs/skills/competencies within a single organization. The relationships form a pay structure that should: Motivate behavior toward organization objectives (line of sights) E. g. , salespeople work hard company profit commission. Why do we care about the internal alignment of jobs: company perspective: cost. Don"t want to pay any more or any less than you should for a job. Ideally, would pay an amount up to the value to the company. How a job is ranked internally determines compensation for the job. For many workers, compensation from work is the individual"s/family"s only source of income it is important. Workers need to feel that their pay is fair relative to the pay of others. Research shows internal fairness is more important to most workers than external fairness. Because you can measure internal fairness easier than to other companies. The company"s job structure is usually formalized in terms of:
