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Pay Systems within Organization: Internal/External Equity

Describe your personal experiences (or a friend's experiences) with an organization's pay system. In your opinion, did the system possess internal and external equity (i.e., were employees compensated fairly)? What factors determined the level of pay employees received and how pay increases were determined? What factors should have determined the level of pay and how pay increases were determined? Discuss whether or not the pay system motivated employees to increase their productivity levels. What improvements do you suggest be made in the organization's pay system?

Bring in at least 2 library sources to help strengthen and support your discussion.

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Hope this helps. Please let me know if you have any questions.

I am currently paid on a publically published scale, based upon years of service and educational level. At the time of employment, each person's experience and educational achievements are reviewed (and verified) and the person is then placed at a certain level. Set increases are given, across the board to all employees. These increases were determined through union and management negotiation. Pay is commensurate with educational achievements and years of service. In the event one returns to school during their tenure and achieves an additional degree, forms can be filled out and the degree will be verified, on an annual basis.

At first glance, this seems to be a system that possesses internal and external equity. A value is place on education and tenure. My educational level sets the initial level and I am rewarded for how ...

Solution Summary

This detailed solution describes personal experiences with an organization's pay system. It discusses if the system possessed internal and external equity (i.e., were employees compensated fairly), the factors that determined the level of pay employees received and how pay increases were determined. It also outlines the factors that should have determined the level of pay and whether or not the pay system motivated employees to increase their productivity levels.It includes suggestions to improve the system. Includes APA formatted references.

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