Internal Alignment

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Guidance from the Evidence (cont.)• Tournament theory: Motivation andperformance– All players will play better in first tournament,where prize differentials are larger– Greater difference between an employee’ssalary and the boss’s, harder he/she will work– Several studies have given rise to “winnertakes-all”– Does not directly address turnover(Milkovich, Newman, & Gerhart, 2011)
(More) Guidance from the Evidence Impact of internal structures depends onCONTEXT in which they operate More hierarchical structures are related togreater performance when the work flowdepends on individual contributors High performers quit less under morehierarchical systems when:• Pay is based on performance rather thanseniority• When people have knowledge of the structure(Milkovich, Newman, & Gerhart, 2011)
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 and 10: Guidance from the Evidence• Equit
Page 11: (Milkovich & Newman, 2008)Perceived

Internal Alignment

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