Chief financial officers and procurement managers are supposed to get things for the lowest price. In buying resources, that’s imperative. A great deal on a piece of land. Optioning oil at a three-year low. Locking in high-quality, exotic coffee beans when supply is high and demand is low. A volume deal on laptops. It’s just smart business.

The land certainly is not insulted that it was bought on the cheap. The oil does not burn cooler because it was acquired with a well-timed call option. The coffee is just as aromatic at the lower wholesale price. The laptops don’t operate any differently.

But when a chief financial officer or some other leader applies the resource procurement strategy to people, it quickly disintegrates. People are not just another category of resources that happens to be human. They expect fairness. They appreciate generosity. Their value to the company varies greatly depending on how they believe they are being treated. Positively and negatively, they reciprocate the intentions of their employers.

Fast Company today excerpts a key section of Widgets about the psychology of pay. You can find it here.