About Science Based Management

Felt Fair Compensation

budget cutsAt one time or another in our careers, many of us have had the experience of feeling the burden of responsibility in a role and the frustration of inappropriate remuneration for carrying that burden.

When Jaques found these feelings among employees at Glacier Metal Ltd in 1952, he began to explore this common phenomenon that occurs when the assigned level of work complexity does not match the assigned pay.

Some also may have felt the guilty smile of being paid more handsomely than what actually felt ‘right’ for the assigned work—an equally problematic mismatch as feeling underpaid. Both scenarios have many repercussions for organizational effectiveness and impact productivity negatively.

Thus Jaques began uncovering what is operating inside the organization system to create these two unpleasant and disturbing scenarios, each creating feelings which sap energy which could be focused on productive activities.

The essence of his findings is that people have a built-in sense of the stratified nature of their own capability and of the level of complexity of their work assignments – resulting in a sense of what is “felt-fair” compensation for their own role and other roles in the organization.

The full results of this research and how to use it can be found in Requisite Organization, A Total System … for the 21st Century, second edition [ISBN 1-886436-04-5], see Section Five: Structure of Differential Compensation, page-pairs 73-76, and other books in the Requisite Organization Library™.

Readings in Jaques’ Requisite Organization, A Total System … for the 21st Century, second edition [ISBN 1-886436-04-5], see Structure of Differential Compensation, page-pairs 73-76.

Visit our Library for more information and free downloads, and visit the Cason Hall & Co. Publishers Store to purchase the works of Elliott Jaques as well as implementation support tools.