Research and Insights Archive

Research and Insights from the Center for Effective Organizations

Reward Innovations in Fortune 1000 Companies

This paper by G. Ledford, Jr., E. Lawler III, and S. Mohrman summarizes data on reward innovations from a unique sample of large U.S. firms, based on survey data collected in 1987, 1990, and 1993.

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Paying for the Skills, Knowledge, and Competencies of Knowledge Workers

G. Ledford, Jr. defines competency-based pay and relates the definition to the more familiar approach, skill-based pay.

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Designing Nimble Reward Systems

G. Ledford, Jr. states that increasingly, pay systems are failing to keep pace with the rapid pace of change in business strategies and organizational structures.

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The New Pay: A Strategic Approach

Ed Lawler III states that the “New Pay” is not alternative pay. It is not skill-based pay, gainsharing or any other specific new pay practice. Indeed, it is not a set of new practices, rather, it is a way of thinking about role pay systems in complex organizations.

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Measurement, Evaluation and Reward of Profit Center Managers: A Cross Cultural Field Study

In this study, Kenneth A. Merchant and Chee W. Chow, Anne Wu, explored differences between U.S. and Taiwanese firms in measuring, evaluating and rewarding profit center managers, a subject which has not been addressed in the research literature.

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Strategic Human Resources Management: An Idea Whose Time Has Come

E. Lawler III states that when training costs and other human resource management costs are added to compensation costs, the human resource management function often is responsible for a large portion of an organizations total expenditures.

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Reward Systems That Reinforce Organizational Change

G. Ledford, Jr. and E. Lawler III argue that conventional pay system designs are failing because they are unable to grapple with organizational changes such as globalization, technological change, downsizing, delayering, and new business strategies.

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Aligning Teacher Compensation with Systemic School Reform: Skill-Based Pay and Group-Based Performance Rewards

A. Mohrman, Jr., S. Mohrman, and A. R. Odden explain that teacher compensation structures have remained relatively constant for the past many decades.

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Measurement, Evaluation and Reward of Profit Center Managers: A Cross-Cultural Field Study

This study by Kenneth A. Merchant, Chee W. Chow, and Anne Wu was designed to explore differences between the U.S. and Taiwanese firms in measuring, evaluating and rewarding profit center managers, a subject which has not been addressed in the research literature.

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Effective Reward Systems: Strategy, Diagnosis, Design and Change

Edward Lawler III provides a basic framework for the description of an organization’s reward system.

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Who Uses Skill-Based Pay, and Why They Use It

This paper by E. Lawler III, G. Ledford, Jr., and L. Chang reports data from the Fortune 1000 survey done by the Center for Effective Organizations. Results show that skill based is particularly likely to be used in manufacturing settings and is typically used to support employee involvement efforts.

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