Compensation is a huge part of the HR management of almost every company. There’s two main points of compensation based on from our learning materials this week and these components are extrinsic and intrinsic rewards. Intrinsic rewards displays the intangible, psychological and social effects of compensation and extrinsic rewards displays the tangible, monetary, and nonmonetary effects of compensation.
The time my behavior was altered based on the compensation was the time where I declined working as a lab assistant for an engineering course due to the extrinsic rewards didn’t meet my standards. It was a very difficult job while doing school but the big issue was that it wasn’t paying as well as if I got a job for a construction company somewhere else. I declined the job offer because of the low compensation and extrinsic rewards and found a part timer that pays well during school.
The compensation altered my behavior because of the Maslow’s hierarchy of needs as my physiological, esteem, and self-actualization was being affected. I didn’t think it was a good offer because my inputs did not meet the outputs that were given for this job. I did not want to worry about struggling with not being able to buy things. I also saw better potential in my skillset comparing working as a lab assistant to being a part-time-intern project coordinator.
In conclusion, compensation is an important factor of every employee due to many reasons and it is important that it is based off of fairness and quality.