Research and Insights Archive

Research and Insights from the Center for Effective Organizations

The Design of Skill-Based Pay Plans

Gerald Ledford, Jr. discusses how in skill-based pay (SBP) systems, employees receive compensation for the range, depth, and types of skills they possess.

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Alternative Pay Systems, Firm Performance and Productivity

D. Mitchell, D. Lewin and Edward E. Lawler III explain that the 1970s and 1980s are perceived, with hindsight, as periods of economic change and adjustment. Given that environment, a willingness to experiment in human resource (HR) practices developed, including practices relating to compensation systems.

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The Shaping of Creativity in Organizations

Nirmal K. Sethia analyzes the distinctive attributes of creative individuals and resources required for creative work. The knowledge thus gleaned is used for illustrating how creativity is shaped significantly by its organizational context, in particular, by leadership, organizational structure, and reward system.

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Organizational Impact of Executive Compensation

Edward E. Lawler III states that reward systems are one of the most prominent and frequently discussed features of organizations. Indeed, the literature in organizational behavior and personnel management is replete with the examples of their functional as well as their dysfunctional role in organizations.

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Chief Executive Compensation: A Study of the Intersection of Markets and

A model of the determinants of chief executive (CEO) compensation is presented and tested by Sidney Finkelstein and Donald C. Hambrick.

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Designing Performance Appraisal and Reward Systems for Procurement Professionals in the Telecommunications Industry

Mary Ann Von Glinow, Nirmal Sethia, and Steven Kerr argue that the telecommunications industry is in the throes of revolutionary changes. The new business environment has critically transformed the role and greatly enlarged the responsibilities of the procurement function in the industry.

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Performance Appraisal Driven Pay

Edward E. Lawler III argues that the act of judging is a relatively simple one and one that occurs regularly throughout all human endeavors. The situation is substantially more complex in formal organizations than it is in most situations where performance judgments are reached.

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What Laws Govern the Size of a Meaningful Pay Increase?

This study by David Bowen, Christopher G. Worley, and Edward E. Lawler III examined the relationship between different size pay increases and their meaningfulness to employees.

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Pay for Performance: Dollars and Sense

Guidelines are proposed that should be followed in developing pay for performance plans in this paper by Edward E. Lawler III.

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Strategically Designed Benefit Plans as a Source of Competitive Advantage

David E. Bowen and Chistopher A. Wadley discuss how employee benefit plans, which can add 50% to payroll and be neither understood nor appreciated by employees, can be a source of costly headaches for a firm.

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Gainsharing: Congruence with High Involvement Organization Design

Allan M. Mohrman, Jr., Gerald E. Ledford, Jr., and Sheree Demming state that gainsharing is thought to be especially congruent with high involvement organization designs, but little prior research exists concerning the effectiveness of gainsharing, the effectiveness of high involvement designs, or the congruence of the two.

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Pay for Performance: A Strategic Analysis

Edward E. Lawler III argues that the idea of paying for performance is so widely accepted that almost every organization says that it does it.

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