Variables of internal factors to be modifiers of structure the organizational structures are of the “complex classical” type, zation but which affect its . Internal factors that may affect the business organization include innovation, financial and operational factors along with strategic and employee risks. Internal factors influencing wage and salary administration ability to pay: the ability to pay of an enterprise will influence wage rates to be paid if the concerns is running into losses then it may not be able to pay higher wage rate. Maintaining faculty and staff salary structures –strongly influences whether employees view the example of the application of compensable factors salary .
Chapter 3 defining internal alignment learning objectives after studying chapter 3, students should be able to: define what is meant by internal alignment and pay structure describe the three factors that define how internal pay structures are designed describe the factors that shape . Several internal and external factors affect the pay structure of an organization (armstrong, 2006) therefore, this paper discusses the factors that can influence the pay structure labour market being an external factor, the labour market forces are conditions influenced by the supply and demand for labour, which operates from the local . A number of factors influence the remuneration payable to employees they can be categorised into (i) external and (ii) internal factors internal factors. Beside the basic factors p rovided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are: the organizations ability to pay .
The following factors should be taken into consideration in determining wage and salary structure of workers: (i) labour unions: the labour unions attempt to work and influence the wages primarily by regulating or affecting the supply of labour. Internal & external factors that influence employee behavior by josh fredman - updated september 26, 2017 an employee's behavior depends on a mixture of internal and external factors, some of which are more prominent than others. One of the key factors when designing salary structures is the balance between internal and external pay equity internal pay equity refers to the employees’ pay compared with those in similar positions within an organization. The internal factors that influence wage rates are the employer's compensation policy, the worth of a job, an employee's relative worth in meeting job requirements, and an employer's ability to pay.
Employees make internal equity pay comparisons with others performing the same job but practice may not always coincidepay structure influences compensation . Internal wage structure reconsider job evaluation factors, or pay the reduced wage the farmer has fewer viable options when the market would pay a higher wage . Factors affecting employee compensation internal factors: the internal factors exist within the organization and influences the pay structure of the companythese are as follows:. Although there are several internal processes, and influential factors of wage determination, what is examined below are the external factors that influence wage determination external factors are those that operate outside of, and are beyond, the influence of any individual organization.
Four internal factors to consider when determining executive pay internal pay structures “rather than having bonus pools, where usually the company has a pool . Pay equity: internal and external considerations perceptions of equity can also influence a company's abil the following factors contribute to these wage . There are many factors influencing wage and salary structure of an organization the economic influence on the ability to pay is practically nil .
Established and start-up companies alike periodically review their organization’s compensation structure the most comprehensive analyses include looking at internal as well as external factors that create salary differences in business analyses, a swot analysis -- examining strengths, weaknesses . Study on the factors that influence labor relations salary structure, the payment of overtime working, internal pay equity, the payment of old-age insurance, . The internal factors also play a very important role and affect the organizational structure (moran, harris & moran, 2007) the internal factors like the size of the company have a great impact on choosing and selecting the organizational structure.