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Subject: Total Compensation (HR) – Q3 Behavioural Framework for CompensationAnswer the following question using 350-450 words. What steps need to be followed to design an effective reward system that generates the types of employee behaviour that an organization needs? Use your answer to explain what had possibly gone wrong in the true story of the ratoutbreak in Hanoi, Vietnam in 1902 when the French offered a bounty for each rat killed.Michael Vann, an associate professor of history at California State University Sacramento, has suggested the Cobra Effect should be called the “rat effect”after a similar scheme had unintended consequences in French colonial Vietnam.The French offered a bounty for each rat killed after they became alarmed following an outbreak of vermin in Hanoi in 1902.”Thousands of rat tails are being delivered to the city hall. The French think they’re really making a dent into the rat population,” Professor Vann told a 2012Freakonomics podcast on the Cobra Effect.But a health official discovered a rat farm on the outskirts of Hanoi.”And the Vietnamese were growing rats, cutting off their tails and bringing them into the city, to the city hall, to collect the bounty,” Professor Vann said on the podcast. “You know, this is absolutely a disaster in terms of trying to remove rats.”

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