The importance of focusing on employee skills is stressed in this article by E. Lawler III and G. Ledford, Jr. Particular attention is given to how skill based pay and skill based selection processes can be implemented in order to create a strategic skills focus in complex organizations.
Research and Insights Archive
Research and Insights from the Center for Effective Organizations
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Pay Systems Must Support Quality
The relationship between pay systems and total quality management systems is discussed in this paper by Edward Lawler III.
Designing Pay Systems for Teams
Three different approaches to teams are identified–parallel teams, project teams and work teams in this article by Ed Lawler III and Susan Cohen.
Survey-Based Prescriptions for Skill-Based Pay
This paper by N. Gupta, G. Ledford, Jr., D. Jenkins, Jr., and H. Doty summarizes key findings from a study, sponsored by the American Compensation Association, of 97 skill-based pay plans.
Strategic Reward Systems
This chapter by D. Jenkins and E. Lawler III presents theory and research on the role of pay systems in complex organizations.
CEO Compensation Systems in Electric Utility Firms: Strategic and Environmental Effects
This paper by Sydney Finkelstein and Nandini Rajagopalan utilizes an agency theory perspective to study the effects of strategic orientation and environmental change on CEO compensation systems.
Paying the Person: A Better Approach to Management
This article by Edward Lawler III reviews problems with job based management systems and focuses particularly on the impact of job evaluation systems.
Fast Forward
Peter V. LeBlanc presents a case study of a modified skill-based pay (depth) design which provides both skill and merit pay for white collar technical personnel In this high technology company.
Paying for Skills in Two Food Processing Plants
This case study by G. Ledford, Jr. and G. Bergel considers the use of skill-based pay in two General Mills plants. The plants were “Greenfield” high involvement/high performance organizations that produce the same product.
The Evolution of Skill-Based Pay in an Ammunition Assembly Plant
This case study by G. Ledford, Jr., W. Tyler, and W. Dixey describes the evolution of the skill-based pay plan over a period of seven years in a Honeywell high involvement facility.
The Effectiveness of Skill-Based Pay Systems
Gerry Ledford, Jr. explains that skill-based pay (SBP) systems reward employees for the range, depth, and types of skills they possess. Employees are paid for the skills they are capable of using, rather than for the job they are performing at any point in time.
Employee Involvement and Pay System Design
This article by Edward E. Lawler III discusses a pay strategy that supports employee involvement. It emphasizes pushing information, knowledge, power and rewards to lower organization levels.