MGT 462 Chapter Notes - Chapter 3: Outsourcing, Absenteeism, Industrial Revolution
Document Summary
Internal alignment (equity) - pay relationships among jobs or skill levels within a single organization, focuses attention on employee and management acceptance of those relationships. Involves establishing equal pay for jobs of equal worth and acceptable pay differentials for jobs of unequal worth. Relationships form a pay structure that should support the organization strategy, support the work flow, and motivate behavior toward organization objectives. Pay structure - array of pay rates for different jobs within a single organization, they focus attention on differential compensation paid for work of unequal worth. Work flow - process by which goods and services are delivered to the customer. Pay increases for promotions, more challenging work, and greater responsibility as employees move up in the structure. Line-of-sight - an employee"s ability to see how individual performance affects incentive payout. Employees should be able to see the links between their works, the work of others, and the organizations objectives.
