Published by:
Harvard Business Publishing
Length: 8 pages
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https://casecent.re/p/47435
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Abstract
Traditional compensation systems that value status instead of contribution do not reward the entrepreneurial activity U.S. companies need. They''re also unfair, costly, and inefficient. Now U.S. employers are changing their pay practices to forge better links between compensation and performance. Traditional ideas about hierarchy come into question every time one of these changes is made, so attacks on pay that look like fine-tuning are actually revolutionary in what they portend for organizational design.
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Abstract
Traditional compensation systems that value status instead of contribution do not reward the entrepreneurial activity U.S. companies need. They''re also unfair, costly, and inefficient. Now U.S. employers are changing their pay practices to forge better links between compensation and performance. Traditional ideas about hierarchy come into question every time one of these changes is made, so attacks on pay that look like fine-tuning are actually revolutionary in what they portend for organizational design.