Compensation Strategies that Work from the Boardroom
Aligning Pay and Results
Compensation Strategies That Work from the Boardroom to the Shop Floor
Howard Risher is a senior fellow at the Center for Human Resources, Wharton School, University of Pennsylvania.
In "Aligning pay and results: compensation strategies that work from the boardroom to the shop floor", Risher takes us from the boardroom to the shop floor, away from the historical mechanistic view and scientific management philosophy towards organizations that were product oriented and had corresponding piece rate payment, merit pay, profit sharing, individual based pay systems that were focused on last year's performance.
According to Risher, organizations are more and more evolving into service oriented knowledge networks and learning organizations with corresponding compensation management systems that are gain sharing, goal sharing, success sharing, achievement sharing, broad banding and based on pay for performance. Additionally these new boardroom compensations management strategies are team based, skill based and competency based and should be designed, managed and aligned to support future business value and results.
Contributors to "Aligning pay and results: compensation strategies that work from the boardroom to the shop floor" include experts from DuPont, Towers Perrin, Sibson, William M. Mercer, and other firms.
In this book on compensation strategy Howard Risher brings together ideas from a group of consultants focusing on the role of compensation for achieving organizational goals and results.
Comparing between new and traditional pay philosophies, throughout the book contributors discuss issues using real cases such as:
- use of incentives as one of the tools to accomplish performance,
- compensation strategy and variable-pay system: DuPont case,
- competency-based and skill-based pay as incentives for employees to enhance their competence and add new skills,
- problems of team-based pay.
Easy to read, "Aligning pay and results: compensation strategies that work from the boardroom to the shop floor" is a recommended study for HR professionals and consultants considering a results or Value Based Management oriented compensation strategy.
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