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HRM3705 WORKBOOK 3

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WORKBOOK 3

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Tutorial 3 – Workbook 3

Internal Alignment

What is meant by internal consistency?

- Internal consistency implies that jobs should be paid what they are worth. This
implies that a process of job analysis and job evaluation should take place to
understand what are the expectations of the role and what are the qualifications
required and then evaluate the job, to see where in the organisation it sits
- Internal consistency suggest that we pay more for jobs with more complexity and
more experience and knowledge than jobs with little complexity and no
experience and knowledge required
- Internal consistency also implies that we should comply with the “equal pay for
work of equal value” legislation.
- Internal consistency thus helps managers to set the accurate pay for the position
- A process of job analysis and job evaluation should take place to determine the
worth of a role and or the internal consistency.

How do you determine internal alignment?

- You should use defensible methods to determine internal alignment. This means
that you need to use tools that will allow you to defend pay differentials.
- It helps that your organisational structure is either job based or employee based.
- If it is job based it will include job analysis, job evaluation and job hierarchy.
- If it is employee based, it will include skill based and competency based.
- Both job based and employee based structure will achieve remuneration
objectives such as attracting employees, retain employees, motivate employees,
compliance, efficiency and fairness.
*Be sure to go to your prescribed textbook and ensure that you can table the
differences between job based and employee based structures.

What is job analysis?

- Job analysis is a systematic approach to defining, for example, the job role,
description, requirements, responsibilities, and evaluation.
- It helps in finding out the required level of education, skills, knowledge, and
training for the job position.
- It also depicts the job's worth, i.e. the measurable effectiveness of the job and
the contribution of the job to the organisation.
- It effectively contributes to setting up the compensation package for the job
position.

Why is it important to do job analysis?

- In order to establish internal consistency. To ensure that you are paying
employees what they are worth.
- It aims to justify why jobs are paid differently, and jobs with similar skill set but
different experience are paid differently.
- Job analysis is the first step that you need to do before you can do job evaluation
which then leads to building job structures(the relationship amongst jobs inside
an organisation based on work content) and pay structures(array of pay rates for
different jobs within a single organisation). It is fundamental to all HR related
activities

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