Legal Environment/Total Rewards Resizing organizations must have a good idea of where they want to go and ensure to the best of their ability that they will be able to convince employees that this new direction is desirable for all parties involved. First, organizations need to gather information concerning what psychological contract obligations employees perceive as being most valuable. Probably the best way to do that is to gather feedback from an employee survey. In essence, organizations need to know what employees want if they hope to retain and motivate the key people in their workforce. Understanding what employees value most will allow an organization to be more prudent in the implementation of its resizing efforts, because organizational leaders will be better equipped to minimize the number of employees who perceive serious psychological contract breaches.

The organization must constantly monitor the changing need structure of its employees. This process should be tied to the strategic direction of the organization. Human resource managers need to be aware that as the strategic direction of the organization changes, the operational design of the total reward package and its method of implementation (performance assessment) also must change in order to increase the likelihood that it will satisfy the needs of employees. By looking at all of the total reward dimensions (for example, pay, benefits, and employee development), the organization may be able to satisfy the needs of a larger number of employees during resizing (Trahant, 2007).

In addition, human resource managers are facilitators for many of the resizing benefits provided to employees who are being displaced, as well as to employees who remain with the organization. For example, the human resource staff should schedule outplacement services, coordinate employee severance packages, and provide counseling services to assist layoff victims. To respond to the needs of surviving employees, the human resource staff should engage in activities such as providing counseling, updates on new compensation packages, and additional job training.

When there have to be changes in the psychological contract, employers should look...

As employers continue to design increasingly sophisticated wellness programs, the final HIPAA nondiscrimination regulations clarify some important points that employers should keep in mind and discuss with their legal counsel (Simon et. al. 2007). Both procedural and interpersonal remedies may be used to reduce some of the adverse consequences that may arise for the organization when changes to the psychological contract are made (Morrison & Robinson, 1997; Rousseau, 1995). Remedies to reestablish a relationship may comprise instituting communication mechanisms that tell employees how conclusion are made and implementing actions that allow employees to confront or appeal job decisions made by the firm. Human resource managers ought to ensure that employees understand how the organization is trying to meet their multiple needs. In addition, they should give employees the chance to express any new changes in their expectations of what they consider their organization should provide to them. By making the center of attention on their needs, in conjunction with managerial capabilities and resources, the manager may allow the company to keep key talent.
Legal Environment and Total Rewards

Pay is one of the most important areas of the modern firm. The traditional reward method just paid money (Chen & Hsieh, 2006; pg 4). It is what compensates drives, motivates, and rewards employees for the work they do. Or it does the opposite of these things. Old pay-my term for most past and many current pay structures-winds up being a frozen structure based on tenure, entitlement, and internal equity. The concept of new pay began to articulate a more cogent direction for pay systems, linking pay to employee and firm success. New pay, the concept, takes things a significant step further by combining the ideas of total compensation and employee choice.

The total compensation solution is based on four ideas. The first idea is that previous and most current pay systems are a serious impediment to attracting, retaining, and motivating contemporary employees.

The second idea is that total compensation involves…