INTERNAL ALIGNMENT – focuses on similarities
INTERNAL ALIGNMENT – focuses on similarities &
differences among jobs within a single organization and the relative contribution of the jobs to organizational objectives.
• key issues:
– egalitarian vs. hierarchical
– base the structure on jobs, skills, competencies, or market
– how to incorporate internal structure with external data
JOB BASED STRUCTURE – uses job evaluation to
compare the similarities & differences in the content and value of jobs.
JOB EVALUATION –> basis for decisions on pay
JOB CONTENT BASED – assessing skills required
to perform jobs, job duties and
responsibilities
JOB VALUE BASED – relative contribution of each job to the organization’s objectives
JOB EVALUATION METHODS:
- Ranking (due to relative contribution to the
organization’s success)
- Classification (benchmark jobs)
- Point Method
POINT METHOD
1. Job Analysis -> Job Description
2. Compensable factors - a work-related job attribute of value to the organization that provides a basis for comparing relative worth
- help organization pursue its strategy and
achieve its goals
• Based on work performance
• Based on the strategy and values of organization
• Acceptable to those affected by the resulting pay structure
3. Numerically Scales Factors – how much of a factor is present in a job
4. Factor weights – factor’s importance
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