Deck 3: Defining Internal Alignment

Question 1

Define what is meant by internal alignment and pay structure.

Answer 1

NA

Question 2

Describe the three factors that determine how internal pay structures are designed.

Answer 2

NA

Question 3

Describe the factors that shape internal structure.

Answer 3

NA

Question 4

Explain the two strategic choices involved in designing internal pay structures.

Question 5

Explain three theoretical approaches to determine which pay structure is best for an organization.

Question 6

Describe three consequences of an internally aligned pay structure.

Question 7

what Factors Shape Internal Structures?

Question 8

What is internal alignment? Why is internal alignment an important compensation policy? What happens when a compensation policy is not internally aligned?

Question 9

What are the external and organization factors that shape the internal pay structure of an organization?

Question 10

What are the differences between a hierarchical pay structure and an egalitarian pay structure?

Question 11

How do equity theory, tournament theory, and institutional model inform the design of pay structures?

Question 12

Look into any organization-your university/college, workplace, or the grocery store where you shop. Describe the flow of work. How is the job structure aligned with the organization's business, the workflow, and the organization objectives? How do you think it influences employee behaviours?

Question 13

Prepare a list of at least five Canadian laws at various levels of government that impact pay rates.

Question 14

Illustrate the internal labour market for faculty at your university/college, using Exhibit 3.5 as a guide.

Question 15

CASE: The Orchestra
Summary of Case
An actual salary structure for a regional orchestra facilitates discussion of reasons for the differences.
Learning Outcome
All organizations, no matter their size, have compensation issues. Decisions on internal consistency frequently are the most contentious.
-Describe the orchestra's pay structure in terms of levels, differentials, and job-based or person-based.

Question 16

CASE: The Orchestra
Summary of Case
An actual salary structure for a regional orchestra facilitates discussion of reasons for the differences.
Learning Outcome
All organizations, no matter their size, have compensation issues. Decisions on internal consistency frequently are the most contentious.
-Discuss the factors that may explain the structure. Why do the violinists and the violas get paid different amounts?

Question 17

CASE: The Orchestra
Summary of Case
An actual salary structure for a regional orchestra facilitates discussion of reasons for the differences.
Learning Outcome
All organizations, no matter their size, have compensation issues. Decisions on internal consistency frequently are the most contentious.
-Why do the Violinists get paid more than the oboist or trombonist? Is it that violins play more notes? Why does the principal trumpet player earn more than the principal cellist and clarinetist, but less than the principal viola and flute players? What explains these differences? How does the relative supply versus demand for violinists compare to the supply versus demand for trombonists?

Question 18

CASE: The Orchestra
Summary of Case
An actual salary structure for a regional orchestra facilitates discussion of reasons for the differences.
Learning Outcome
All organizations, no matter their size, have compensation issues. Decisions on internal consistency frequently are the most contentious.
-What is the pay differential between the principal viola and the next highest paid viola? What about between the principal trumpet and the next highest paid trumpet? Why are these differentials so different?

Question 19

CASE: The Orchestra
Summary of Case
An actual salary structure for a regional orchestra facilitates discussion of reasons for the differences.
Learning Outcome
All organizations, no matter their size, have compensation issues. Decisions on internal consistency frequently are the most contentious.
-How well do equity and tournament models apply?