[ppt]powerpoint presentation - pourlesage -...
TRANSCRIPT
![Page 1: [PPT]PowerPoint Presentation - pourlesage - homerubybuccat.wikispaces.com/file/view/Compensation... · Web viewCompensation Strategy: Internal Consistency Internal Alignment Pay Structure](https://reader036.vdocuments.us/reader036/viewer/2022062908/5ad2c33d7f8b9a92258d82af/html5/thumbnails/1.jpg)
> > > > > > > > INTERNAL ALIGNMENT
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Compensation Strateg
y:
Internal Consistency
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Internal Alignment
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Pay Structure
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Structures Vary
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Strategic Choices in Designing
Internal Structures
• Fitting or tailoring the pay structure to be internally aligned involves two strategic choices– How tailored to organization design and work
flow to make the structure– How to distribute pay throughout the levels in
the structure
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Strategic Choices in Designing
Internal Structures (cont.)
• Tailored versus loosely coupled– Tailored
• Well designed jobs with detailed steps or tasks• Very small pay differentials among jobs
– Loosely coupled• Requires constant innovation
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Strategic Choices in Designing
Internal Structures (cont.)
• Egalitarian versus hierarchical– Egalitarian structures send the message that all
employees are valued equally– Advantages
• Fewer levels and smaller differentials between adjacent levels and between highest- and lowest-paid workers
– Disadvantages• ‘Averagism’ brings to light that equal treatment can
mean more knowledgeable employees feel underpaid
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Strategic Choices in Designing
Internal Structures (cont.)
• Egalitarian versus hierarchical (cont.)– Hierarchical structures send the message that
the organization values the differences in work content, individual skills, and contributions to the organization
• Multiple levels include detailed descriptions of work done at each level
• Outlined responsibility for each
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Strategic Choice:
Hierarchical versus Egalitarian
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Which Structure Has the Greatest
Impact on Performance? on Fairness?
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Consequences of an
Internally Aligned Structure