---
date: '2024-01-24'
description: internal pay structure, job analysis, pay differentials, and criteria for job-based versus person-based organizational structures.
id: Defining Internal Alignment and Job Analysis
modified: 2026-06-05 15:08:37 GMT-04:00
tags:
  - commerce4be3
title: Defining Internal Alignment & Job Analysis
created: '2024-01-24'
published: '2024-01-24'
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---
> internal alignment: relationship among different jobs/skills/competencies within a single organisation, job structure

also known as internal equity

Structure needs

- support organisation strategy
- support workflow (process which good/services are delivered to the customer)
- motivates behaviour (line-of-sight)

> **career laddering/progression**

## Internal Pay Structure

> refers to the array of pay rates for different work or skills within a single organisation

- number of level
- pay differentials between levels
- criteria or bases used to determine those levels and differentials.

## differentials

> pay difference among levels

- requiring more skill/experience
- performed in unpleasant work conditions
- adds more value to the company
- motivations

## criteria

- content: work performed in a job
- value: worth of the work

## structure.

Job-based structure: work content - tasks, behaviours, responsibilities (engineering teams)

Person-based structure: skill, knowledge, competencies focus to employees (lawyer, clientele)

## impact.

### external factors

- economic pressures: inflations, COL
- Government policies, Laws and Regulations: Pay-Equity Act
- Stakeholders: board, employees
- Cultures and customs: high-performance and focus internal equity.

### organisation factors

- strategy
- technology
- human capital
- HR policy
- Employee acceptance
- Cost implications

## internal labour markets

> rules and procedures that determine pay for different jobs within single organisation and allocate employees among those different jobs.

## Strategy for designing internal structures.

| Tailored                                     | Loosely Coupled                                       | Egalitarian                                       | Hierarchical                                                   |
| -------------------------------------------- | ----------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------------- |
| Adapted by organisation with low costs       | Adapted by organisaion require constant innovation    | Few levels                                        | multiple levels                                                |
| well-defined jobs with detailed paystructure | Pay structure are more loosely linked to organization | smaller differentials                             | detailed job description                                       |
| McDonald                                     | Job are flexible, adaptable and changing              | Equal treatment = knowledgable feels underpaid    |                                                                |
|                                              |                                                       | higher performance when collaboration is required | higher performance when workflow depends on individual effort. |

## Equity theory: fairness

- compare ratio of their own outcomes

## Tournament theory

- relationship between motivation and performance

## Institutional theory

- Copy others and conform
- use “best practices”
- align for one organisation might not align with another

## Consequences.

_for internally-aligned Pay Structure_

- efficiency
- fairness
- compliance