The effect of compensation program and structure on SBU competitive strategy: a study of technology-intensive firms

Article Abstract:

The effect of various compensation mechanisms on competitive strategy for technology-intensive firms were studied. Strategic business unit (SBU) managers from 79 high-technology firms located in the western U.S. were surveyed. The study hypothesized and concluded that managers who rely mostly on salary will opt for less-risky competitive strategies such as product diversification and marketing promotions. Executives dependent on incentive pay favored riskier strategies such as increased R&D spending and longer-term programs of increased expenditures for capital equipment and employee training. The study also concluded that decentralization of R&D decision-making results in increased expenditures in R&D, capital equipment and employee training.

High technology industry, Compensation and benefits, Incentives (Business)

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Empirical organizational-level examinations of agency and collaborative predictions of performance-contingent compensation

Article Abstract:

Issues related to organizational compensation systems are examined, focusing on comparing and contrasting agency theory and collaborative perspectives as means to explain compensation dynamics. Topics include definitions of agency theory and collaborative perspective, long-lasting employment relationships, performance-contingent compensation, agent tenure, and agent monitoring.

Economic aspects, Agency theory

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Congruence between technology and compensation systems: implications for strategy implementation

Article Abstract:

This article analyzes the relationship between plant performance and the use of integrated manufacturing and compensation procedures in the concrete pipe industry. The authors hypothesize that compensation policies that reward teamwork and flexibility increase the effectiveness of manufacturing management systems, such as total quality management and manufacturing technology.

Organizational Methods NEC, Management, Organizational effectiveness, Organizational change, Pipe industry, Pipe and tube industry, Production management, Total quality management, Factory management

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