WORK & REWARDS

 The Employer-Employee Exchange Process

 Rewards and the Human Brain
 A Model Relating Compensation to Workplace
Behavior
THE EMPLOYER EMPLOYEE EXCHANGE
PROCESS
Availability
Capability
Performance

Employer Employee

Rewards

The Employer Employee Exchange Process

THE EMPLOYER EMPLOYEE EXCHANGE
PROCESS (Contd..)
People gain satisfaction from their work, but the kind and the strengths of
satisfaction have been difficult, if not impossible, to identify, define and
measure with any degree of precision. Furthermore, the individual
performer may attain one set of satisfactions from work efforts whereas
the group with which the same individual identifies attains another.
Meanwhile, as the individual and the group coordinate their needs and
efforts, a third set of satisfactions develops. The enigmatic issues related
to work have defined simplification, but a better understanding may be
gained by analyzing the process by which employers provide rewards in
exchange for the availability, capability, and performance of the
employee, as described in Figure. In the model here, the employer
recognizes that individuals are both similar and different. The knowledge,
skills, and abilities possessed by one individual may be far more valuable
than those possessed by others. Employers use their reward system to
attract and retain those who not only have the desired knowledge and
skills but also have the interest and are willing to put forth the effort
needed to link the knowledge and skills to the accomplishment of
organizational goals and objectives.
 REWARDS AND THE HUMAN BRAIN

The design, implementation, and administration of any

reward component-or, for that matter, the entire
compensation or non compensation system- require a
sensitivity to and an understanding of human
perceptions, needs, and drives. Given the current state
of technology and the Framework existing in most
organizations, designing and operating reward systems
sensitive to human needs and psyches may be at the
best difficult and frustrating and at worst a mission
impossible. The central problem here is the brain and
the way in which it controls human behavior are not yet
fully understood.
REWARDS AND THE HUMAN BRAIN (Contd..)

The figure depicts the compensation-performance feedback loop in which

compensation is a response of the employer to the performance stimuli of the
employee, and performance is the response of the employee to the stimuli of the
rewards received from the employer. There are no assurances that specific stimuli
will or will not elicit specific responses. Motivational theory makes it possible to use
observation and experience to identify reward-performance directions, and on that
basis to infer stimulus-response relationships among activities of employers and
employees.
REWARDS AND THE HUMAN BRAIN (Contd..)
To identify the effect of a reward package on the employees of an
organization, it is important to determine which portion of the
package provides for subsistence, which portion is available as
disposable income, and which portion provides for demands
beyond subsistence.
When employee demands are identified, certain requirements appear
to be almost universal in nature. At survival or even subsistence
level, employee food, housing, and clothing requirements must be
satisfied. In addition, the modern worker will almost always expect
transportation, some health care, and other benefits that extend
beyond subsistence into luxury categories. Although these
employee demands are universal, when they are joined together to
form a set of requirements for a specific employee, employers
may find that they differ significantly.
The figure describes the balancing of employee demands with
employer-provided compensation rewards:
REWARDS AND THE HUMAN BRAIN (Contd..)

Savings &
Compensation Investment
Subsistence

Luxury Influence

Subsistence
Savings
Luxury Current
Future
Demands &
Influence Demands
Investments
 A MODEL RELATING COMPENSATION TO
WORKPLACE BEHAVIOR

Think conceptualize Reason Focus Behave

Knowledge
Base

Lessons from
consequences of
Behaviors

The Thinking-Behaving Process

And obviously no………
U have to do it,
Else U R F-i-r—e---d