October 1995

Work and Rewards in a Reengineered World

There is a "new deal" for the world of work and rewards, one which calls for innovative thinking and constant reengineering. This was the theme sounded by Dr. Marc J. Wallace, Jr., keynote speaker at OPM's National Performance Management Conference. Dr. Wallace, founding Partner of the Center for Workforce Effectiveness, is a nationally recognized expert on employee performance and compensation. The reengineering he calls for is not simply a reshuffling of organizational components or cutbacks in staff. Although these may be necessary, they are not sufficient. Relying on such tools alone means that an organization is just going to keep making the same mistakes, but with fewer employees.

What organizations must do is examine all of their work processes and reward systems to make sure that they are tied closely to organizational goals. The design of jobs must be oriented to the work process. A greater depth and breadth of skills will be required by all employees in order to best serve customers. The virtual work place may become a reality where the time and space of work is redefined, such as in telecommuting or work-at-home models of work. And effective labor/management partnerships are needed if an organization wants to be successful.

Dr. Wallace also observed that organizations will need to place more emphasis on how they reward employees, with the payment of cash awards tied to organizational success.