Defining Competitiveness, Designing Pay Levels, Mix, and Pay Structures Essay

Internal policy or internal alignment is responsible for specifying the examinations among skill levels and employees job in an organization. This suggests that it is more focus on the organization's functional departments (Frieifeld, 2013). Skills or jobs of a worker is like comparative contribution in the organizational objectives and strategy. Among organization, external competitiveness refers to the pay relationships. External competitiveness is responsible for setting the pay level, either equal to, below or above that of the competitor. In addition, for it to be established, having powerful organizational culture is important (Demir, 2015). Contrary, internal alignment policies ensure that an organization is in a position of paying reasonably about the internal relative worth. Also, external competitiveness is responsible for comparing job positions regarding similar duties, experience levels and responsibilities, equal pay together with other compensation (Moore, 2007).

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It is possible for both external competitiveness and internal alignment policies to be incorporated in strategy. In fact, in the external competitiveness context, internal alignment is essential since these compensation system's facet can be used to explain the kind of compensation an employee is or will receive (Wankel, 2008). From the perspective of human resource managers or management, the success of most human resource activities is determined by these policies. Both of them plays a significant role when it comes to comparing jobs in addition to individuals about the contribution to the objectives of the organization.

Factors shaping the external competitiveness of an organization include labor market, product market, and organization factors. When it comes to the labor market, competition exists for individuals with different skills while in the product market, competition exists regarding the products and services being offered in the market. As a result, the organization's financial condition is always affected (Ostoj, 2015). When it comes to organizational factors, each organization and employee has unique characteristics, just like its business technology, productivity, experience and strategy of the workforce.

References

Demir, N. (2015). On the Importance of Strategic Alignment in Organizational Cultu re. American Journal of Business, Economics and Management 3(3): 126-131. Retrived from http://www.openscienceonline.com/author/download?paperId=1838&stateId=8000&fileType=3

Frieifeld, L. (2013). Internal Alignment and Employee Engagement Are Not the Same. Retrieved from https://trainingmag.com/content/internal-alignment-and-employee-engagement-are-not-same/

Moore, R. (2007). External Competitiveness. Retrieved from https://www.globalspec.com/reference/52112/203279/external-competitiveness

Ostoj, I. (2015). Labor market efficiency as one of the pillars of the global competitiveness of an economy - conclusions for the labor market regimes of the EU countries. Journal of Economics and Management, 20 (2): 80-91. Retrived from http://cejsh.icm.edu.pl/cejsh/element/bwmeta1.element.desklight-c1fb0fae-d1f8-49d2-a8aa-95bbd0e78e56/c/06_23.pdf

Wankel, C. (2008). 21st Century Management: A Reference Handbook. America: SAGE Publication, Inc.