Work in the 21st century requires new understanding in organizational behaviour; how individuals interact together to get work done. This volume brings together research on essential topics such as motivation, job satisfaction, leadership, compensation, organizational justice, communication, intra- and inter-team functioning, judgement and decision-making, organizational development and change. Psychological insights are offered on management interventions, organizational theory, organizational productivity, organizational culture and climate, strategic management, stress, and job loss and unemployment.
Chapter 5: Compensation Systems in the Global Context
Compensation Systems in the Global Context
A selective review of the compensation literature was conducted. Compensation is a multidimensional concept and topics covered include base pay, variable pay, individual incentives, ownership, and benefits. A history of compensation, a summary of the current state of knowledge, and directions for future theory, research, and practice are provided. Throughout the chapter global issues are discussed. Our goal for the chapter is to continue to invigorate compensation as an area of study in work psychology.
Compensation (defined here as pay, benefits, and other rewards with monetary value) is by far the most costly human resource intervention in organizations. Compensation budgets of over $1 billion are not uncommon in Fortune 50 companies. As much as 80% ...