Sunday, December 8, 2013

Demands and Contributions

Continuing from the last byte where we continued discussion on Demands and Contributions, we shall look at these in today's byte too. We shall refer to the diagram in the earlier byte at various points to gain clarity.

Demands are expectations that parties have on the others in the relationship. Each party in the exchange makes a demand on the other. Organizations express its demands on the individual in the form of goal or mission statements, or job expectation or performance objectives and performance feedback. It is through these formal mechanisms through which people learn about the organization's demands and expectations.

Individuals to possess needs that need to be satisfied (we could look back at earlier theories discussed to understand this in greater detail). It is these needs that form the basis of the expectations or demands placed on organization by the individual. It has been found that employees need fulfillment and the feeling of belongingness are both essential to a healthy exchange and have the feeling of organizational membership.

As the other side of the coin - every demand comes in with some form of contribution. Each party to the exchange makes demands on the other; each also has contributions to make to the relationship.  The demands expressed are satisfied through the contributions made to the relationship. Employees satisfy the organization's demands using their skills, abilities, knowledge, energy, networks etc. Organization’s contribution in the relation would be in the form of salary, security, benefits, promotions, status, social affiliations etc.

The question of fairness still remains when we look at this sort of an exchange.

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