If an organization hopes to cultivate a workforce that is engaged and motivated to help it follow its strategy and reach its business objectives, the organization must create a pay structure that employees believe values their contributions and is equitable across positions. Internal alignment refers to the policy that evaluates the similarities and differences between jobs in the organization and then helps create a pay structure that is fair and equitable based on the relative skills and contributions of each position. Based on this information, I feel that my previous employer did have equitable job levels and pay differences. If an organization wishes to create internal alignment, they must first have a comprehensive understanding of the
Before looking at the functions of an internal quality assurer (IQA) role it is beneficial to understand what quality assurance is and why it has been established within the learning process. ‘Quality assurance can be defined as a system to monitor and evaluate a product or a service.’ Pg122 Assessors handbook It is the role of the IQA to uphold and maintain the credibility of the qualifications undertaken by candidates. The IQA supports this by helping employers and candidates to fully understand how these qualifications can further support and benefit their business. Thus ensuring effective delivery meeting the learners’ needs and expectations, which
All employees analyze their environment and strive to be recognized and rewarded for their hard work and dedication they put into the company, in a word they are seeking justice. Justice can be defined as a person receiving what they feel they are entitled to and if they do not receive what they deserve, the situation may boarder on injustice. Unfortunately in today’s society justice and appreciation are not given out to all those deserving (Pinder, 1998). Within the Equity theory there are three justice theories. The first of which is distributive justice, this touches on if the referent feels that the outputs are fair that are given to the employees. This comes into play
Alignment between HRM practices and organizational strategy establishes a coherent system for organizations. There has to be a "fit" between the human resource planning and organizational strategy, Internal fit aligns HR practices with strategic organizational objectives while external fit aligns HR practices with the external environment. The external fit exhibits a more precise fit between quality policy and assertive performance HRM practices (Youndt,
Rather, Equity, and the sense of fairness which commonly underpins motivation, is dependent on the comparison a person makes between his or her reward/investment ratio with the ratio enjoyed (or suffered) by others considered to be in a similar situation”(Balancing Employee Inputs and Outputs).
The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).
It is also imperative for the company to connect its compensation and benefit package with its overall objectives and plans along with aligning it with its HR plan.
The first lesson we learnt was the importance of treating employees fairly, especially in terms of wages. Employees who are content and treated fairly are productive and will evidently drive the bottom line of the company. Their productivity will be high, knowing their wage is reflective of their work and they feel valued in the company. Not only did employees experience pay dissatisfaction if they perceived their pay as unfair, they were also less motivated to achieve the organization’s goals. (HRM 212) In Quarter 6, we increased the wages for Level 3,4, and 5 workers. However, we received feedback that notified us that our Level 1 workers
The financial or economic interest is an important motivating factor for employees; however, when the gap in salaries is high, it could result in dissatisfaction and affect the business economically.
Each year all employees would receive a raise, pending funding, but each raise will be the same for each individual job. According to the equal pay act, if there is an inequality in wages, employers are not required to reduce the pay of either sex to equalize their pay (The Equal Pay Act of 1963). Therefore, with this proposed plan, an outside auditor will be send to the agency and analyze all employees pay to ensure that the pay is equal and then switch the entire agency over to the new pay chart. The pay of the person experiencing the inequality will receive the new higher pay that their associate is receiving. This new pay system will ensure everyone is receiving the same pay and decrease the wage gender discrimination. Each year an outside auditor will be send to the agency and audit the pay of the employees to ensure the employer is adhering to the pay system.
Internal and External Pay Equity. Find an article through ProQuest that discusses pay equity as it relates to KSAs. Address the importance of managing pay equity (both internal and external) and the consequences for not doing so. Also address the role of pay equity and employee job satisfaction and motivation from a strategic perspective. Present your views in 200 words or more in your discussion post. Respond to at least three of your classmates’ postings. Remember to properly cite your sources.
Adams was a workplace and behavior psychologist who pushed the ideas of the Equity Theory onto employees. Equity Theory works to explain the importance of keeping equity between the contributions that an employee brings to a job and the benefits that the employee receives. According to www.MindTools.com, “Much like many of the more prevalent theories of motivation (such as Maslow 's Hierarchy of Needs and Herzberg 's Two-Factor Theory), Adams ' Equity Theory acknowledges that subtle and variable factors affect an employee 's assessment and perception of their relationship with their work and their employer.” Adams’ findings also point out that employees will take into consideration how others are being rewarded in the workplace and then compare it to their own rewards. If things do not feel equal for an employee, motivation is very likely to dwindle for the employee in spite of the unfairness.
An issue could be whether to emphasize seniority or performance. Seniority-based pay can have an advantage over performance based to the extent that seniority is a goal for employees to stay at the business longer to achieve that pay. An obvious disadvantage of having seniority-based pay is that lazy employees could earn just as much as the hardworking employees. I would take actions such as formulating fair and consistent policies and practices, open door management policies, competitive pay and benefits, and employee trust and recognition. Fostering a good relationship between management and employees and addressing employee concerns make it less likely for employees to
The company faces pay equity issues both internally and externally. Internally, employees working in the warehousing department want to be transferred to manufacturing in order to make more money. This immediately begins to throw off the
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The organizational justice (OB, p. 256) is taken to extremes. Implementing the same reward through the company notwithstanding local market and standard of living, notwithstanding individual performance creates the feeling of inequity and does not encourage doing better than the average. Attempts to minimize sabotage appear to focus on treating employees fairly and honestly, by