Re: Incentives LO1225

Dr. Ivan Blanco (BLANCO@BU4090.BARRY.EDU)
Mon, 15 May 1995 18:24:29 -0400 (EDT)

Replying to LO1143 --

> Date: Wed, 10 May 95 18:47 PDT
> From: (Tom Burke)
> Replying to LO1119 --
> ==============================================
> Mike McMaster wrote:
> >Mine was to point you outside of the set of thinking that you are
> >bound by. Sorry that I failed so miserably.
> >
> ==============================================
> Mike, I appreciate your kind reponse. I am don't believe you failed. I
> just still disagree. I point me to any specific program which denies a
> worker "fair" compensation which is seen as a positive to the worker. The
> concept of what is "fair" will be defined by the worker. That definition,
> IMHO, will be dynamic, it will change with time and place. If I were in a
> biz that could generate enormouse revenues, I would want more than in a
> biz where there were few resources.

<<< a lot of stuff deleted here >>>

I think that one of the most important clues to the whole
discussion is in Tom's words "The concept of what is `fair' will be
defined by the worker." Tom also indicates that what is fair is a moving
target, within each individual. I agree with this notion. That's why I
questioned most compensation systems, specially the ones based on the
traditional reliance of extrinsic factors. There is no compensation
package that can meet or satisfy what the workers perceive as "fair" or
that can respond fast enough to changes on workers' perceptions of what is
"fair." We have operated for too long on the belief that we meet the
needs of our employees, but we don't. Must of the labor unrest
experienced is the results of this failure.

I don't know if there is any statistics to prove that the heavy
reliance on pay for performance is a very flawed system. I think that we
might have to go out of the western and westernized world to find systems
others than those who compensate (or try to) performance. For as long as
we attempt to link money received and performance, we will be running the
risk of creating more dysfucntional behaviors (due to perceived
dissonance, etc), than if we used some other system. We might be more
creative if we accepted the notion the pay for performance is not as


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el mismo paso que camina su educacion." "The nations march
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systems evolve." Simon Bolivar