A Very Brief Overview on Internal Alignment

Transcription

1 A Very Brief Overview on Internal Alignment

2 Internal alignment, often called internal equity, refers to the pay relationships among different jobs/skills/competencies within a single organization. (Milkovich, Newman, & Gerhart, 2014, p. 72)

3 Pay Structure Compensation (in thousands of $) Engineer Senior Engineer Systems Engineer Lead Engineer Advisor Engineer Consultant Engineer (Milkovich & Newman, 2008)

4 Consequences of an Internally Aligned Structure Undertake training Increase experience Pay structure Reduce turnover Facilitate career progression Facilitate performance Reduce pay-related grievances Reduce pay-related work stoppages (Milkovich, Newman, & Gerhart, 2011, p. 86)

5 Differentials The pay differences between levels Pay is determined by: Knowledge/ skills involved Working conditions Valued addition to the company Intention of these differentials: To motivate people to strive for promotion to a higher-paying level (Milkovich, Newman, & Gerhart, 2011)

6 Guidance from the Evidence Equity theory: Fairness Research suggests that employees judge fairness by multiple comparisons Comparing to jobs similar to their own at same employer Comparing their job to other jobs at same employer Comparing their jobs pay against external pay levels Comparing their pay for similar work at different time periods (Milkovich, Newman, & Gerhart, 2011)

7 Equity Theory Adams (1965) Person Inputs Outcomes compared to Comparison Other Inputs Outcomes A social comparison theory of motivation. Person compares his or her ratio of Inputs to Outcomes with the Inputs to Outcomes ratio for a Comparison Other. Ratios that are not in balance are perceived as inequitable and may trigger actions to redress the imbalance

8 Guidance from the Evidence Impact of internal structures depends on CONTEXT in which they operate More hierarchical structures are related to greater performance when the work flow depends on individual contributors High performers quit less under more hierarchical systems when: Pay is based on performance rather than seniority When people have knowledge of the structure But when close collaboration and sharing of knowledge are required, more egalitarian structures are related to greater performance (Milkovich, Newman, & Gerhart, 2011)

9 Compensation and Job/Work Analysis

10 Ex. 4.3: Determining the Internal Job Structure Internal relationships in organization Work analysis Job descriptions Job evaluation Job structure Collect information about the nature of specific jobs (Adapted from Milkovich, Newman, & Gerhart, 2014, p. 103)

11 Work/Job Analysis The systematic process of collecting information that identifies similarities and differences in the work. (adapted from Milkovich, Newman, & Gerhart, 2014)

12 Why Perform Work Analysis? Potential uses exist for every major human resource function An internal structure provides a work-related rationale for pay differences Uses of work analysis in compensation Establishes similarities and differences in work content of jobs Helps establish an internally fair and aligned job structure

13 Methods of Data Collection (Psy 3315) Observation Interviews (individual or group) Questionnaires Diaries Equipment Review of existing records/literature Study of equipment design specifications Do the work yourself

14 Generic Categories of Information Collected (Psy 3315) Job Content Job KSAOs or Competencies Job Context Duties, tasks, activities Knowledge, skills, abilities and other characteristics (KSAOs) Purpose, accountability, responsibility, supervision received or given, consequences of error, physical demands, working conditions, shifts, equipment, etc. (Bemis, Belenky, & Soder, 1983)

15 Work Analysis: Levels of Descriptors (Brannick, Levine, & Morgeson, 2007, p. 13)

16 Conventional Work Analysis Techniques Task Inventory Analysis Critical Incident Technique Position Analysis Questionnaire (PAQ) Functional Job Analysis (FJA) Methods Analysis (Motion Study) Guidelines-Oriented Job Analysis Management Position Description Questionnaire (MPDQ) And many more!

17 Ex. 4.6: Typical Data Collected for Work Analysis (Milkovich, Newman, & Gerhart, 2014, p. 107)

18 The Judgment Call How much detail is needed to make pay decisions?

19 Typical Sources (Psy 3315) Work analyst him/herself Subject matter experts (SMEs) job incumbent(s) immediate supervisor(s) others who have previously performed job Technical expert (e.g., prof in field) Trainers Clients or customers Textbooks

20 Judging Work Analysis Reliability Validity Up to Date/Currency? Acceptability Usefulness/ Practicality (Milkovich & Newman, 2014)

21 Job Description Categories (Psy 3315) I. JOB IDENTIFICATION II. PURPOSE OF JOB/PLACE IN ORGANIZATION III. JOB SUMMARY IV. ESSENTIAL FUNCTIONS V. JOB DUTIES & RESPONSIBILITIES VI. ACCOUNTABILITIES/EMPLOYMENT STANDARDS VII. JOB SPECIFICATIONS VIII. WORKING CONDITIONS/HAZARDS/HOURS IX. PRODUCTS/TOOLS/EQUIPMENT USED X. EXTERNAL & INTERNAL CONTACTS (Carrell, Elbert, & Hatfield, 1995; Gael, 1988)

22 Times for Reviewing Jobs and Revising Descriptions Assigning a new incumbent to a job When major changes are made in product or outputs provided by work unit or individual Introduction of new equipment, methods, or procedures to workplace Reorganization of work unit Implementation of a new pay system When a new responsibility (a major work activity area) is added to job JCAHO Review (in healthcare settings)