IRE367H1 Lecture Notes - Lecture 1: Reward System, Piece Work, Performance Appraisal
23 Nov 2020
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Compensation accounts for about 70% of organization"s costs. Increase your negotiating power over your own compensation. Develop marketable skills for an hr career. Be the source of change for more equitable pay systems. Avoid pay systems that help avoid harmful tragic outcomes. Be the leader behind a pay system that drives the desired outcomes. Both underscore that there is some type of reciprocity in the relationship, the employee provides something the employer wants, in return for a perceived reward. Extrinsic rewards (job context): money, security, social needs, status. Compensation is about more than just monetary rewards. As such, compensation is not only an economic transaction it is also: A psychological transaction (a psychological contract; reward vs. incentive) A sociological transaction (means for securing status and affirming cultural values) Political translation (level and form of pay reflects power of the parties) Amount of pay you can get depends on power of parties to negotiate and bargain together.
