Internal Alignment

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Equity Theory – Adams (1965)“Person”“Inputs”“Outcomes”compared to“Comparison Other”“Inputs”“Outcomes”A “social comparison” theory of motivation. Person compares his or herratio of Inputs to Outcomes with the Inputs to Outcomes ratio for aComparison Other. Ratios that are not “in balance” are perceived asinequitable and may trigger actions to redress the imbalance(Muchinsky, 2003)
(Milkovich & Newman, 2008)Perceived Equity of a Pay StructureMY PAYMy qualificationsMy work performedMy product valueOTHERS’ PAYTheir qualificationsTheir work performedTheir product value
Page 1 and 2: Internal Alignment
Page 3 and 4: Internal alignment, often calledint
Page 5 and 6: Pay structure refers to the array o
Page 7 and 8: Differentials• The pay difference
Page 9: Guidance from the Evidence• Equit
Page 13 and 14: (More) Guidance from the Evidence I

Internal Alignment

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