Smart Working and Variable Pay

By Raul Bernardino

Abstract:

We all know that work is changing: the evidence is all around us. The Job Descriptions are increasingly inadequate as a guide to what people are actually expected to do. The organizational hierarchies are distorted and fragment as changing markets and services strengthen the pressure to give work to those who are best equipped to handle it, irrespective of job title. The organizational structures can become ‘silos’ that inhibit effective communication and demotivate employees. On the other hand, Information and Technology presents opportunities for developing new products and services, and new ways of communicating and managing.

In short, the systems and methods that once served to hold organizations together are now more likely to be doing damage. Managers need to take account of the changing attitudes and expectations of employees, who are unlikely to be impressed by a ‘command and control’ style of management. Additionally, they need to find new kinds of organizational ‘glue’, and new ways of organizing that will allow more flexibility but still retain a necessary degree of control.

Introduction:

It is being a common practice in the organizations, in which is to give the differences of the wages to their staff or employees whereas a part of the motivation. This also can be apply for engaging the employees to ‘smart work’ for the organization such as employee works from remote location, employee has flexible time, etc.

According to Simmons K (2013) in Capgemini publication, smart working is ‘an approach to organizing work that aims to drive greater efficiency and effectiveness in achieving job outcomes through a combination of flexibility, autonomy and collaboration, in parallel with optimizing tools and working environments for employees.’

Maslow’s needs an hierarchy theory of motivation in synchronizing with the imperial research to motivate  employees while Alderfer redefined it into ERG theory of motivation which stands for Existence needs, Relatedness needs, and Growth needs. Moreover, he explains as follows:

·    Existence needs: These are included need for basic material necessities. In short, it includes an individual’s physiological and physical safety needs.

·    Relatedness needs: These are included the aspiration individuals for maintaining significant interpersonal relationships (be it with family, peers or superiors), getting public fame and recognition. Maslow’s social needs and external component of esteem needs fall under this class of need.

·    Growth needs: These are included need for self-development and personal growth and advancement. Maslow’s self-actualization needs and intrinsic component of esteem needs fall under this category of need

Let’s take look at the IBM Company. The company has wisely taken a decision to apply variable pay and fix wages to IBM employees. Why big companies like the IBM use this method of motivating his employees? It is because, management had to analyze, company profits and losses, it is including understanding their own work environment, and organization culture. In this case, they came up with the ideas of categorizing their staff into two types of the groups (salesmen and engineers)

Usually salesmen are extrovert persons. Therefore, they are easy to engage and convince the costumers and able to trade out their goods or products. It is look like; they are gambling and play a high risk. For example, salesmen gave all details of the product information, the costumers still have to decide whether the costumers are willing to buy it or not.  Even in some situation, the costumers have to agree on certain things, they maybe also change the mind or the idea to post-pone the orders or just reject them. Therefore, pay for the salesmen are different and it is depending on how many of the products that they have been sold out and much profits that company earned. The salesmen have to be more creative, have enough knowledge about the products, and knowing the culture during the engagement with the costumers. This is also an opportunity for salesmen to trade more and they will be getting a high pay of course.

The system engineers are mostly introvert persons. In this case, the system engineers are more depending on orders or the salesmen works. Therefore, it was wise to have a fix wages for system engineers. It is sure that, between each of system engineer’s wages, the IBM company has differentiated the wages in order to motivate their system engineers. 

In some cases, people have to choose, either to have fix pay or variable pay. The experience, told me, that I am not fitted to a variable pay. It is because I am introvert person; who works toward to the assignments and achievements. Otherwise, I will be stressful and not well motivated.   In this case, I just focus on achievements, as it is stated in work orders and job descriptions.   

Conclusion:

The hard workers are usually expecting high pay. But in the reality, that who has a good position in the organization, he or she will be getting a good pay. The different wages that the organizations offering to the employees are intended to give a good motivation. It is become common practices, that every fiscal year, the organizations will be giving rewards to each employee, who has got a good performance. The organizations are also giving awards or recognition to the staff at any time that he or she has an outstanding work performance during a period of time (every 3 months or 6 months).

Technology systems help organizations to easy deploy a work force (smart workers) at any time and from anywhere around the globe.

References list:

• Huczynski, A & Buchanan, D (2007) Organizational Behavior (6th Ed) Essex: Pearson Education
• Managing People - Intrinsic & Extrinsic Motivation [on-line]. Available from:  http://www.slideshare.net/adeelq/managing-people-intrinsic-amp-extrinsic-motivation (Accessed: 12 March  2013)
•  Smart working: The impact of work organization and job design [on-line]. Available from: http://www.cipd.co.uk/NR/rdonlyres/64A02358-8993-4185-BEEB-9812A9175383/0/smartworking.pdf (Accessed: 12 March  2013)
• ERG Theory of Motivation - Clayton P. Alderfer [on-line]. Available from: http://www.envisionsoftware.com/articles/ERG_Theory.html (Accessed: 12 March  2013)
• Simmons, K (2013) Capgemini, Smart Working [on-line]. Available from: http://www.uk.capgemini.com/services-and-solutions/services/hr/solutions/smart_working/ (Accessed: 12 March  2013)
• Aldefer, C.  (2013) ERG Theory of Motivation [on-line]. Available from:  http://www.managementstudyguide.com/erg-theory-motivation.htm (Accessed: 12 March  2013