CB Chapter 2

Define internal alignment.

• The array of pay rates for different work or skills within a single organization

• Often called internal equity, refers to the pay relationships among different jobs/skills/competencies within a single organization

• The relationships form a pay structure that should support organization strategy

• The number of levels, the differentials in pay between the levels, and the criteria used to determine those differences describe the structure

Below are the objective of internal alignment EXCEPT __________.

• Support customer

• Support work flow

• Support fairness

• Motivates behaviour

An internal pay structure can be defined by ___________, ____________ and ____________.

• Pay differential between level, criteria and content

• Pay differential, pay salary, criteria and content

• Levels, pay salary, criteria

• Levels, pay differential between levels, criteria and content

Normally pay is determined by below elements EXCEPT __________.

• Knowledge/skills involved

• Reporting relationship

• Working conditions

• Value added addition to company

Whatever wage the employer and employee agrees on for a job. This is refer to ____________.

• Pay salary

• Use value

• Exchange value

• Benefits

The value of goods or services an employee produces in a job. This is refer to ____________.

• Pay salary

• Use value

• Exchange value

• Benefits

Below are the factors that shapes internal alignment structure EXCEPT _____________.

• Internal factors

• External factors

• Organisation factors

• Customer factors

Below are the factor that shapes external factor in using internal alignment EXCEPT __________.

• Pay differential between levels

• Economic pressures

• Government policies

• Cultures and customs

Below are the organisation factors that shapes internal alignment EXCEPT __________.

• Work design

• Stakeholders

• Overall HR policies

• Organization strategy

Determine and elaborate THREE (3) factors that shapes internal alignment structure.

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