MHR 749 Lecture 2: MHR WEEK 2
7 Dec 2017
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Document Summary
Differentials: the pay differences among levels are differentials, higher pay is usually due to work, requiring more skill/knowledge, performed in unpleasant work conditions, or, work that adds more value to the company. Internal labour market: refer to the rules and procedures that, determine the pay for the different jobs within a single organization, and, allocate employees among those different jobs. Institutional model: copy others and conform, organizations use best practices , however, what aligns with the strategy of one organization may not align with that of another. Which structure fits best: supports how the work flow is organized and organization strategy, motivates employees" behaviours toward organization objectives. Consequences of an internally-aligned pay structure: efficiency, aligned structures lead to better performance, fairness, proponents say fair differentials motivate, others say only small differentials incite cooperation, compliance, comply with regulations of the country.
