The current downturn of global economy has already generated heaps of pink slips across the globe, and each passing day is getting filled with the news of either job cut or pay cut. This is an unprecedented situation, considering the magnitude of loss all around.
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2. 0. Employees' Expectation Regarding Pay Negotiation Rewards or recognition system serves to the emotional need of humans, which in turn motivates them. "Every behaviour comes out of 'pain and gain' principle", says Shiv Khera (p110). There can be many types of gains, ranging from money, vacations or gifts to medallions, or even they can be intangible too - recognition, appreciation, sense of achievement, growth, responsibility, sense of fulfilment, self-worth, accomplishment, and belief are the examples of such gains.
The reward structure of a company can make it or break it as it is assigned to fuel the employee cooperation, effort and overall satisfaction of all members of the company Cacioppe (1999). A host of other researchers like Hackman (1997) Shea and Guzzo (1987) too have endorsed this view, where they clearly advocated for aligning rewards with group activities.
2. 1. Intrinsic Rewards According to Deci (1975), intrinsic rewards are the tools to evoke a sense of personal causation - i. e., an inward mechanism serving as the guiding engine for the action, where its elements are usually intangible and working on the plane of one's perception, where the journey is being enjoyed over the outcome. This kind of rewards too is expected to generate higher frequency of response from the employees. 2. 2. Extrinsic Rewards Extrinsic rewards are supposed to generate perceptions of external causation (Deci, 1975). Here the nature of rewards is mostly tangible in nature – a hike in salary or status, or material gains in other forms.
However, not all researchers like Guzzo, (1979), subscribe to this demarcation of reward system, on the ground of being polemic rather unnecessarily! For them rewards are rewards, meant to bring the change in the frequency of desired response of the employees towards a desired direction. However, no one can deny the fact that the categorization of the types of rewards facilitates one to underpin the efficacy of a certain kind of reward under certain condition.
The elements of intrinsic rewards are mostly intangible; its components can at best be bunched together as a package of signals that deals with the temporal activity of humans
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