Rewarding Excellence : Pay Strategies for the New Economy

Rating:
Summary: The Key Theme of Today's Reward System.
Review: Rewarding Excellence is truly a fascinating study that is more about how to design and manage complex organizations than how to pay individuals.

As argued by Lawler, "the old reward practices and systems that worked well in nationally focused, bureaucratic, capital-intensive, hierarchical, steady-state, near-monopoly corporations such as the old General Motors and AT&T simply don't fit the realities of today's business environment. Dramatic change is needed, and it is not difficult to identify what the key theme of today's reward systems should be : a focus on rewarding excellence. Many factors argue for excellence being the number-one focus of any organization's reward system, including the ability to attract and retain the best people and to motivate the kind of performance that an organization needs in order to succeed in the new economy."

In this context, Lawler :

* argues that organizations should adopt a new logic of organizing that recognizes the new competitive realities and that today's key sources of competitive advantage are human capital, core competencies, and organizational capabilities.

* shows why the old reward systems, which focus on jobs and merit pay, don't do an adequate job of developing and motivating either individuals or organizations.

I highly recommend this excellent study to all executives and HR professionals.

Rating:
Summary: The Key Theme of Today's Reward System.
Review: Rewarding Excellence is truly a fascinating study that is more about how to design and manage complex organizations than how to pay individuals.

As argued by Lawler, "the old reward practices and systems that worked well in nationally focused, bureaucratic, capital-intensive, hierarchical, steady-state, near-monopoly corporations such as the old General Motors and AT&T simply don't fit the realities of today's business environment. Dramatic change is needed, and it is not difficult to identify what the key theme of today's reward systems should be : a focus on rewarding excellence. Many factors argue for excellence being the number-one focus of any organization's reward system, including the ability to attract and retain the best people and to motivate the kind of performance that an organization needs in order to succeed in the new economy."

In this context, Lawler :

* argues that organizations should adopt a new logic of organizing that recognizes the new competitive realities and that today's key sources of competitive advantage are human capital, core competencies, and organizational capabilities.

* shows why the old reward systems, which focus on jobs and merit pay, don't do an adequate job of developing and motivating either individuals or organizations.

I highly recommend this excellent study to all executives and HR professionals.