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Management article
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Reference no. 92102
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1992

Abstract

After launching a new quality program, the CEO of Top Chemical Co. was searching for a team-based compensation program that would reflect his company''s new philosophy. A committee was formed to discuss the options. The compensation vice president explained his idea for paying teams based on their performance, making pay an incentive for continued improvement and overall excellence of the team. The plan met with resistance from employees at all levels of the company. What seemed like a simple idea for a pay plan turned into a very complicated matter. Four experts on compensation reveal where Top Chemical went wrong in its plan and how the CEO might bring about change successfully.

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Abstract

After launching a new quality program, the CEO of Top Chemical Co. was searching for a team-based compensation program that would reflect his company''s new philosophy. A committee was formed to discuss the options. The compensation vice president explained his idea for paying teams based on their performance, making pay an incentive for continued improvement and overall excellence of the team. The plan met with resistance from employees at all levels of the company. What seemed like a simple idea for a pay plan turned into a very complicated matter. Four experts on compensation reveal where Top Chemical went wrong in its plan and how the CEO might bring about change successfully.

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