Aligning Compensation Systems With Organization Culture

What is it about?

This research study looks at the impact of organization culture on compensation and vice versa. Various frameworks provided in this article will help managers in effectively managing compensation costs as well as enhancing performance of the organizations. The organization culture can be shaped by the type of compensation system used and the kinds of behaviors and outcomes the organization chooses to reward and punish. When culture and compensation structure (fixed pay vs. variable pay) are synchronized, the culture acts as an asset and generates competitive advantage. Depending on how compensation system is designed, developed, communicated and managed, it can positively or negatively influence an organization’s culture.

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Photo by michal dziekonski on Unsplash

Photo by michal dziekonski on Unsplash