Saturday, August 05, 2006

Work, Time and Value Added

Perhaps we have a misconception about compensation and work done...

Let's say we get paid $2000 and we put in 8 hours of work daily.

Suppose we then get paid $4000 in another job. Do we then put in 16 hours of work a day? Do we expect ourselves to put in 16 hours a day?

However, sometimes in a workplace this happens, but not with us, but with perception of others.

The reason for this is equity theory.

I get X for doing 8 hours of work. But Mr. Expat gets 3X for doing 8 hours or even less amount of work. So in our minds we feel that there is inequity or unfairness.

Which leads to this conclusion, our salary isn't really "fair". You and I are also products and services. We sell our services to a company according to a price negotiated and agreed upon.

Your price is based on perception of value.

Price is always about value, or should I say perception of value. Because value is only a concept.

One person's piece of junk is another's priceless artifact.

Therefore the only way we can increase our salary is to increase our value or should I say perception of value.

Value is merely a concept, it cannot be held, it cannot be touched, it is intangible, it is abstract, existing only in the mind.

People pay for value.

Gold is valuable only because it is perceived to be valuable. It is useful no doubt. As a conductor, as plating, etc. However most gold isn't used. It's hoarded, bought and sold but never used.

Isn't it interesting that a lot our existence and work now revolves around abstract concepts? Something imaginary perhaps? Are we chasing illusions in our lives?

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