- External Competitiveness: There are two organizing concepts,
External competitiveness, and internal consistency. External
competitiveness is an organizing concept, which discusses the pay
scales in an organization, compared to other competitor’s pay
scales. This concept is very important as it is essential to
maintain a good pay structure equivalent to competition otherwise;
it can lower the moral of the staff and reduce sales, revenues, and
profits. The ability to find and retain new staff will be very
difficult. It is critical for an organization to have a pay scale
in parity with the market standards. This can be achieved by
regular survey of the market trends in term pay scales and the
management can link it to performance-based incentives.
- Internal Consistency: Internal consistency reliability measures
the efficiency of a test or survey in delivering accurate results.
It is a reliability measure. Many statistical tools are available
to measure reliability, for example, Cronbach’s alpha. It is
important to measure the efficiency of the activities initiated and
the accuracy in reporting. This is an important tool to test how
well various items measuring different constructs deliver
consistent scores.
According to me, it is an important
tool to measure the efficiency and effectiveness of various
statistical tools and tests used to measure the consistency of
activities in an organization; if all measures on test give the
same results, the test has internal consistency reliability.
- Individual considerations: Individual
consideration is the amount of coaching and mentoring a leader
actually does to maximize the individual’s performance. It also
involves listening to the concerns of the follower and addresses
his needs.
Coaching, mentoring, and the
leader’s attitude is critical in getting individuals to achieve
their best. This is important in an organization and good
governance as handholding and mentoring ensure good work results,
improves performance, and motivates individuals to give their best.
Many studies prove a direct correlation between individual
considerations and employee performance.