Internal Alignment

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Levels• Pay structure is often hierarchical, based on:– Number of levels– Reporting relationships(Milkovich, Newman, & Gerhart, 2011)

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Levels• Pay structure is often hierarchical, based on:– Number of levels– Reporting relationships(Milkovich, Newman, & Gerhart, 2011)

Differentials• The pay differences between levels• Pay is determined by:– Knowledge/ skills involved– Working conditions– Valued addition to the company• Intention of these differentials:– To motivate people to strive for promotion to ahigher-paying level(Milkovich, Newman, & Gerhart, 2011)

Page 1 and 2: Internal Alignment
Page 3 and 4: Internal alignment, often calledint
Page 5: Pay structure refers to the array o
Page 9 and 10: Guidance from the Evidence• Equit
Page 11 and 12: (Milkovich & Newman, 2008)Perceived
Page 13 and 14: (More) Guidance from the Evidence I

Internal Alignment

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