Work & Rewards in the Virtual Workplace: A "New Deal" for Organizations and Employees

Work and Rewards is chock full of useful information. Crandall and Wallace write mainly for organizations that resemble their clients -- corporations that manufacture goods for profit. But I think this book is even of value for non-profits. While obviously helpful for human resource people, this book would be beneficial reading for CEOs, top organizational leaders, and even frontline supervisors. "The job is dead," the authors declare. "Job" is part of the "old deal" marked by cradle-to-grave security. "The New Deal will require us to act as adults, not children." Employees will be increasingly responsible for acquiring the skills needed by their employers. Narrow job descriptions are already giving way to broader, more flexible skill sets. The authors claim this shift will help organizations run more effectively and will increase worker satisfaction.Don't be mistaken; Work and Rewards is not a pie-in-the-sky futurists dream. It is based on the real life experiences the authors have had with dozens of clients, including Sony, Corning, and others. Work and Rewards is packed with practical models, steps, outlines, case studies, plans, and formulas. These tools can help organizations evaluate the cost of going virtual, determine what key drivers the organization wants to reward, and how to manage the transition. I highly recommend Work and Rewards.Chapters include:1. Forging a New Compact Between People and Technology2. Working in the Virtual Workplace3. Exploring the Virtual Workplace4. Work Design5. Skills and Competencies6. Rewards in the Virtual Workplace7. The Blended Workforce8. The Economics of the Virtual Workplace9. Getting to the New Deal in the Virtual Workplace

"Economic and technological forces have converged in this last decade of the twentieth century to create an entirely new form of business competition. The New Competition", N. Fredric Crandall and Marc J. Wallace, JR. write, "encompasses a global economy and is driven by information rather than product and by time rather than space, creating a revolution in the way we do business...The New Competition has emerged in three parallel developments: (1). Former competitors forming alliances to command the market, (2). New marriages of technology, markets, and opportunity, and (3). The creation of new business entities that replace traditional ones, defining the entire length of a value chain-a form of organization that has been characterized as the virtual organization...The virtual organization requires a virtual workplace. The virtual workplace is a work environment where goods and services are created and delivered joining employees beyond the traditional bounds of time and place. Technology is a foundation for the virtual workplace, creating the means for innovations in working relationship such as teams of people who work together via teleconferencing or transfer work in progress from one venue to the next across time zones to keep work going on a continuous basis."In this context, in Chapter Six, they examine how the role of rewards and compensation changes when an organization evolves from a traditional to a virtual workplace. Firstly, they define job in a traditional organization and argue: "The job concept served traditional organizations well. Work has been organized in a command-and-conrol bureaucracy characterized by functional specifications and hierarchy. It is a paradigm shaped by early twentieth-century thinking of Max Weber and Frederick W. Taylor, implemented by Henry Ford, and cast in the legislation of Franklin D. Roosevelt's New Deal of the 1930s. Unfortunatelly the paradigm no longer serves us because the job has died. Globalization of production and technological revolution have forced us into a post-industrial model for producing goods and services. The work designs of the virtual workplace have forced companies to tear down hierarchy do away with functional specialization, and organize all activities according to entire business processes that cut across traditional departments and occupations."Hence, they compare traditional and virtual base pay models, and argue that in the new workplace people are paid not for the job they hold but for the role they are expected to play.I. Base Pay Model in the Traditional Workplace:1. Unit of analysis: Job2. Basis for determining value: Job evaluation3. What pay is for: Work performed4. Base pay progression: (a). Modest movement within grades to mid-point. Pay is controlled to mid-point. (b). Promotion required for significant advancement.5. Base pay structure: Many narrow grades, hierarchically arranged.II. Base Pay Model in the Virtual / New Paradi

Like the industrial revolution before it, the Information Age is giving rise to new types of organizations, new ways of working, and new approaches to human resource management. This technology-driven economy, with its virtual realities, is profoundly reshaping the nature of relationships between organizations, as well as between the organization and the individual. On a macro level, the authors aim to show how a new social contract (New Deal) is developing between individuals and organizations, replacing the traditional employer-employee relationship. Through this virtual revolution, the conflict, as many see and experience it today, between people and technology will be overcome. And free market dynamics make it inevitable that virtual organizations will and must continue emerging.Moving from the macro to the micro, the authors explore some of the pivotal changes taking place today; changes in the nature of the workplace, the design of work, the use of competencies, the characteristics of reward systems, learning, career opportunities, and staffing. Numerous tables and diagrams, as well as illustrations from company experiences, highlight key points and make the distinctions between traditional and virtual workplaces vivid. There is a lot to be gained from each chapter. Guidelines are presented to help practitioners address their needs for taking action. The authors are also helpful in laying bare serious problems that companies have faced in applying such concepts as skill- or competency-based pay and broad bands which I, as a consultant in organization and compensation, welcome seeing in print. Additionally, the authors present a model to demonstrate the economic value of the virtual workplace. This is an excellent book, impressive in scope and rich in substance.