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| Science Forum Index » Economy Forum » Employee's output VS their compensation |
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| Brablo |
 Posted: Wed Dec 21, 2005 3:38 pm |
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I would think that this curve is sigmoidal in shape
(http://www.curvefit.com/272700e0.gif) when you plot output VS their
wages. Another words, workers of all sorts, will produce lesser
quality work, lesser quantity of the work, and have lesser morale when
their wages are low (or low in comparison to some other benchmark).
However, when their compensation rises, their cheerfulness rises, and
hence, their output, productivity, and quality of their work. This is
purely common sense. Their incentives to stay on this job is more, and
they work harder to not get laid off. They work harder to become an
asset for this company.
Finally, if you pay the worker *too* much, the output that you get
doesn't increase proportionately. You've saturated their outputs and
any rooms for improvements in their quality, productivity, happiness,
morale, etc.
A great compensation scheme would be one which maximizes productivity,
and/or attempts to get the most value out of output. This is but one
of *many* factors which should be used to determine wages. I'm not
going to get into what other factors should be used in this post.
Given this information, I personally think that there is no reason to
award some people outrageous pay packages. It doesn't make economic
sense (or moral sense for that matter).
Another words, a very high pay package does *NOT* drive productivity or
output. Therefore, an aggressive marginal tax bracket is what is
needed to prevent this practice.
What are your opinions? Has there been any studies on this? |
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| Brablo |
| Posted: Wed Dec 21, 2005 10:40 pm |
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| people that earn their money. |
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| Just Cocky |
| Posted: Wed Dec 21, 2005 11:21 pm |
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On 21 Dec 2005 19:40:33 -0800, "Brablo" <gestureofrespect@yahoo.com>
wrote:
[quote:c4c132c16b]
people that earn their money.
[/quote:c4c132c16b]
Huh? |
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| Ron Peterson |
| Posted: Thu Dec 22, 2005 12:08 am |
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Brablo wrote:
[quote:b9e1c95cd7]people that earn their money.
[/quote:b9e1c95cd7]
What does it mean for people to earn their money? Should people work so
hard that they burn up a lot of calories? Should people not take a
break?
--
Ron |
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