Abstract
A limited number of studies have addressed the idea of 'strategic ' reward systems-the matching of compensation systems to a firm's strategy. Prior research on this topic has been confined to U.S. firms, however, and a number of key questions remain unanswered. Using a sample of 917 employees from two large Swiss financial institutions, we found that pay systems are linked with divisional strategic orientation, but in a different form than prior studies. Additionally, we identify hierarchical position as an important variable in the tailoring of reward systems. Hierarchy has a significant main effect on pay plan design, and an interactive effect with strategic orientation.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 777-792 |
| Number of pages | 16 |
| Journal | Strategic Management Journal |
| Volume | 22 |
| Issue number | 8 |
| DOIs | |
| State | Published - Aug 2001 |
| Externally published | Yes |
Keywords
- Compensation
- Contingency theory
- International
- Managerial discretion
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management