Congruence Between Pay Policy and Competitive Strategy in High-Performing Firms  

Oleh:

Montemayor, Edilberto F.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: JOM: Journal of Management vol. 22 no. 6 (1996), page 889-908.
Topik: pay policy; pay policy; competitive strategy; firm

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ92.5 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

Based on existing strategic compensation theory, this study examines seven theoretical propositions concerning the link between business - level competitive strategy and pay policy. Canonical discriminant analysis of 261 responses to a national survey show that high - performing firms whose strategy is dominated by Cost Leadership, Innovation, or Differentiation tactics adopt different pay policies. Further analysis shows that inferior firm performance is associated with the lack of fit between pay policy and business strategy. These findings support the need for a contingency approach in the design of pay policy.

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