Essay about TCOB hrm598 Final

Submitted By jerrist
Words: 662
Pages: 3

598TCO-B
Internal Alignment

The goals in an organization are to attract and retain talented people. Employee’s perception of fairness can promote negativity, increase bad behavior, dissatisfaction with the job and then, leaving the organization. When employees understand how internal pay structure work in relation to the job can help motivate them and others.

Point Evaluation
The number of levels of work in job classification defines internal pay structures, how the pay structure is determined between levels (for example: registered nurse, pay grade 3), and the pay levels between grades. (72) The point based pay factor focuses on the work and ranks knowledge, skills and abilities or responsibility for a job. Pay grades are defined from high to low and then points are assigned to the job.

Compensable factors

Compensable factors are benchmarked and used to weight the total number of points and sub factor that can be assigned to the job. The points are based on employee responsibility in the point factor range for the job he/she is doing. (143)
The compensable factor will influence the strategic business plan of the organization. If the organization is going to be successful it will determine a strategy using compensable factors in its job evaluation.

Internal Pay Structure

Pay grades can be influenced by external factors. The organization may have a strategy in place, internal factors like the technology and human capital to do the job and then unpredictable external like economic pressure, stakeholders or government regulation and law can make the organization have to change its strategy. If the direction of the organization changes, it will affect the compensable factor job evaluation process. (76)

Efficiency, equity, and compliance There are two types of fairness that are perceived by the employee. One type of fairness is labeled distributive justice. The employee pay is influenced by their productivity and by what is going on externally in the market, the company’s policies on pay, and decisions of the organization.

The second type of fairness is the perceived fairness the employees are concerned about when rewards are allocated based on procedures used to determine pay. Employees want to know upfront what their manager expects from them. They want to have some sort of input on what the expectations are, and they want to be told when they are doing a good job. (307)

Compliance

Organizations pay for performance should always comply with federal and state laws. If an organization gets a bad reputation, it will be harder for them to find talented people to work for them. (307)

Job based, knowledge-based and competency-based pay structures

Evaluation formats provide a