MGT 462 Lecture Notes - Lecture 2: Living Wage, Human Capital, Procedural Justice
Document Summary
Base pay - fixed compensation an employee receives at regular intervals. Variable pay - compensation at risk, fluctuates based on employee performance/results achieved, and is typically a one-time payment that must be re-earned each performance period. Internal alignment - often called internal equity, refers to the pay relationships among different jobs/skills/competencies within a single organization. Pay relationships among jobs within a single organization. Difficult, easy, one job, multiple responsibilities, how it"s organized, etc. Skills and knowledge required to do the work. Relative value of the work within the organization. Work flow - process by which good/services are delivered to customers. Pay structure should support efficient flow of work and organizational design. There should be a line-of-sight" relationship between each job and the organizations objectives. Employees should see links between their work, the work of others, and the organization"s objectives. # of levels of work and reporting relationships (it is hierarchical)
