I need a response to my professors question on my discussion post My discussion

Question

I need a response to my professors question on my discussion post

My discussion post

Internal Alignment refers to the pay relationships among the employees of single organization

Internal alignment compares the compensation given to employees with other employees of same organization and ensures that it should be fair to all the employees.

Factors those are most important in determining internal alignment:

Labour unions - There are various formal and informal groups formed in organizations and these labour union wants lesser difference in pay scales for every labourer. So, demands of unions must be considered so they don't go on strikes later.

External environment - External Environment is dynamic, which keeps on changing. Impact of current policies of government should be taken into consideration before defining pay structures.

Goals and objectives - Pay structure should be designed in such a way that the benefits employees are providing to organization by way of achieving its goals and objectives, should be more than the cost of employee to the company.

Other benefits - Organizations must consider all the perks and bonus that are to be given to employees. So, Total cost to the company does not exceed than the set budget.

Internal alignment related to fairness

Internal alignment ensures that every employee must get pay according to their role, qualification and value to the company. It ensures that it must be fair and shall be given without any discrimination.

Internal alignment impacts turnover

When all the employees get equitable and fair pay, they will feel motivated and will work in a team which will help the company to achieve its common set goals and objectives. When the company's mission is achieved it will result in more profitability and hence increase the turnover.

Example of company with effective strategic internal alignment

As per research Ford company has effective strategic internal alignment as they keep on rotating their staff so they become specialized in every field and equitable remuneration can be given to each employee.

WC: 315

References:

Milkovich, G., Newman, J. (2016). Compensation (12th ed). New York, NY: McGraw Hill.

My professors question

Thank you for your post. Why is it important to understand this concept ? How is internal alignment linked to an organizations mission?

Explanation / Answer

Answer 1:

It is important to understand the concept of internal alignment because it ultimately leads to organizational success.

Answer 2:

Organizations mission is an internal drivers that ensures that the words and actions of the organization are in alignment. Organizations mission is linked to internal alignment as it ensures that any compensation given to employees is paid back by employees by accomplishing mission and goals of that organization.

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