E. Lawler explains that there is one potential determinant of performance management system effectiveness, however, which has received relatively little attention: how tightly the results of the performance management system are tied to significant rewards.
Research and Insights Archive
Research and Insights from the Center for Effective Organizations
Available Content
Pay Practices in Fortune 1000 Corporations
Are the reward systems in major US corporations changing? As part of its triennial survey of organizational performance improvement efforts, the Center for Effective Organizations has gathered data on the pay practices of large corporations since 1987.
Virtual Teams That Work: Creating Conditions for Virtual Team Effectiveness
Virtual Teams That Work, by Cristina B. Gibson and Susan G. Cohen, offers a much-needed, comprehensive guidebook for business leaders and managers who want to create the organizational conditions that will help virtual teams thrive.
Pay Strategies for the New Economy: Lessons from the Dot-com Era
Ed Lawler discusses how the 1990’s saw the rise of the dot-coms. They soared to amazing stock market evaluations that defied the laws of economic gravity.
Pay Strategy – New Thinking for the New Millennium
Ed Lawler argues that it is time for new thinking, new practices and more strategic direction in the pay systems of organizations.
Pay System Change: Lag, Lead, or Both?
Edward Lawler explains that changes in an organization’s pay system are usually high visibility, high impact and difficult to execute. As a result they are often considered “hot” change levers that potentially can derail as well as support an organizational change effort.
Executive Compensation
This chapter by Kevin J. Murphy summarizes the empirical and theoretical research on executive compensation and provides a comprehensive and up-to-date description of pay practices (and trends in pay practices) for chief executive officers (CEOs).
Creating Effective Pay Systems for Teams
Ed Lawler III affirms that rewards are an important element in any formal organization. In order to be effective, organizations must answer the fundamental question of why individuals should commit their time, effort, and ideas to it.
Competency Pay for Professionals and Managers in Business: A Review and Implications for Teachers
This paper by G. Ledford and R. Heneman examines the relevance to teachers of business sector experiences with systems that identify and reward the skills, knowledge, and competencies of professionals and managers.
Strategic Orientations, Incentive Plan Adoptions and Firm Performance: Evidence from Electric Utility Firms
Nadini Rajagopalan addresses the topic of executive compensation, one that has fascinated both academic researchers and the business press for the past several decades.
Competencies: The Right Foundation for the New Pay?
In this 1996 paper, E. Lawler III discusses how it is a bit premature to declare job-based pay systems obsolete. It is not too early, however, to note that they are well on their way to being replaced by person-based pay.
Competencies and Competency Models: Does One Size Fit All?
Competency-based pay plans look much alike from one firm to the next. P. Zingheim, G. Ledford, Jr., and J. Schuster ask why this is happening, and whether it is desirable.