VIII. Your Turn: So You Want To Lead The Orchestra!
Summary of Case
Students are provided an actual salary structure for a regional orchestra and are expected to
Learning Objective
Explain how various concepts that affect internal alignment are applied to an actual
organization environment.
Teaching Guidelines
Use this case to stimulate a discussion on the issues regarding internal alignment in a
real-life situation.
Discussion of Case Questions
1. Describe the orchestra’s pay structure in terms of levels, differentials, and job- or
person-based approach.
Based on the numerous job titles, the pay structure has numerous levels. In examining pay
levels and large pay differentials exist, it is a hierarchical job structure.
pay structure.
2. Discuss what factors may explain the structure. Why does violinist I receive more than
the oboist and trombonist? Why does the principal trumpet player earn more than the
principal cellist and principal clarinetist but less than principal viola and principal flute
players? What explains these differences? Does the relative supply versus the demand
for violinists compare to the supply versus the demand for trombonists? Is it that violins
play more notes?
Because this chapter discusses a number of economic and psychological theories, it is useful
It is feasible the pay differences can be explained by strategic importance-the quality of the
violins is deemed more important in the repertoire of most orchestras than the quality of the
they probably have never wondered about how the musicians were paid. This exercise will
make them aware of compensation decisions all around them.
3. What is the pay differential between the principal viola and next highest paid viola?
What about between the principal trumpet and the next highest paid trumpet? Why
these differentials between the principal and other? Why aren’t they larger? Smaller?
Why is the differential between trumpet players different than between the viola
players?
The pay differential between the principal viola and the next highest paid viola is $2,553 and
between the highest paid viola and the principal viola. On the other hand there are only two
trumpets in the orchestra, the principal trumpet and the next highest paid trumpet, and the
pay differential them is $595.
hand the orchestra has only two trumpets and both of them are being paid a high pay. The
next highest paid trumpet’s pay differential with respect to the principal trumpet is just $595.
4.How well do equity and tournament models apply? Do custom and tradition play any
role? What about institutional theory?
The tournament model seems to apply since pay increases substantially if a musician moves
structure by the musicians.
Overall, the elaborate, hierarchical structure would seem to contradict Drucker’s depiction of
is played. The choice of music would be one of the relational aspects of employment.
Sometimes internal pay structures are adopted because they have been called a “best
morale.
IX. Still Your Turn (If You Don’t Want to Lead the Orchestra…)
Summary of Case
Students are instructed to choose another example of how different jobs or skills get paid
Learning Objective
Explain how various concepts that affect internal alignment are applied to an actual
organization environment.
Discussion Questions
Students are asked to address the same general questions as presented in the previous case.
X. Still (yes, still) Your Turn: NCAA
Summary of Case
The NCAA has a 14-year contract with CBS and Turner Sports under which they pay the
NCAA $10.8 billion, or $720 billion per year, for the right to broadcast the NCAA men’s
Learning Objective
Apply student’s knowledge to the issue of pay differences, or no pay at all, for student
athletes.
Discussion Questions
1. Should NCAA athletes get paid as employees?
In favor…NCAA athletes, at least in some sports, produce a great deal of revenue for universities and
universities. Improving the financial package for athletes will cause budget problems for universities,
which are already facing financial problems in some cases. Paying athletes will further isolate them
experience is diminished?
2. If NCAA athletes are paid as employees, either because of legal action or
colleges/universities deciding on their own to change the system, how should the pay
strategy be designed to “work” and avoid the potential pitfalls identified above?
The challenge would be to balance the need for individual excellence with the need for teamwork,
3. What would your pay strategy design cost and how would it be funded? What impact
would the required level of funding have on colleges and universities? How would
athletes outside of sports such as basketball and football be affected?
The relevant issues here are similar to those that came up above.
Answers to Review Questions
1. Why is internal alignment an important policy in a strategic perspective of
compensation?
value of the qualifications to perform different jobs and the conditions under which jobs are
performed. Perceptions of internal alignment by employees will affect their motivation, job
2. Discuss the factors that influence internal pay structures. Based on your own
experience, which ones do you think are the most important? Why?
The factors that influence internal equity include:
oThe value of the output of each job (marginal productivity);
Organizational factors, including
oThe organizational “culture” or values
Employee acceptance or workers’ perceptions of what constitutes an equitable system.
3. Internal structures are part of the incentives offered in organizations. Look into any
organization: your college, workplace, or the grocery store where you shop. Describe
the flow of work. How is the job structure aligned with the organization’s business, the
work flow, and its objectives? How do you believe it influences employee behaviors?
Internal alignment, often called as internal equity, refers to the pay relationships between the
levels, and the criteria used to determine those differences create the structure.
The last part of the question will elicit classroom discussion.
4. What is the “just-wage” doctrine? Can you think of any present-day applications?
It is a “wage” deemed to be “fair” by some authority other than that negotiated in an
employer/employee relationship. In 14th century western Europe, the church endorsed a “just
wage” doctrine, a schedule of wages that supported the existing class structure. Market
to society’s past acceptance of a “just” wage differential between men and women, merely on
5. A typical structure within colleges is instructor, assistant professor, associate professor,
full professor. Is this egalitarian or hierarchical? What added information would you
need to decide? What behaviors by the faculty do you believe the structure influences?
Is it aligned? Difficult to copy? Does it add value?
Student answers may vary.
In all probability, this structure is hierarchical in nature. Further information required to
merited on performance or equal treatment? Are these individuals motivated enough to
more hierarchical structures are related to greater performance when the work flow depends
more on individual contributors. Employees expect to advance based on their own
performance and prefer a structure geared to offering promotional opportunities. However, if