Many thanks to all of you who responded to the following querry posted about a week ago:
One of my MBA students is very interested in understanding the optimal fit between organizational strategy and compensation strategy. He is interested in seeing empirical evidence about what types of incentives (e.g., cash bonus versus stock options) to consider in order to maximize different business goals (e.g., product differentiation, cost leadership, market share maximization etc.) - What readings (both academic and practitioner-oriented) would you recommend in this regard?
Below are the responses I received:
One of the best textbooks on the subject is Strategic Compensation by Joseph Martocchio
See on Amazon at: http://www.amazon.com/Strategic-Compensation-Resource-Management-Approach/dp/0136106404/ref=sr_1_1?ie=UTF8&s=books&qid=1264618117&sr=8-1
Bart L. Weathington, Ph.D.
UC Foundation Associate Professor
University of Tennessee at Chattanooga
Department of Psychology/2803
(1) Check the SHRM and World at Work web sites and their relevant white papers.
(2) Milkovich, Newman and Gerhart's (2010) tenth edition of Compensation is always a good place to start.
Allen Engle
Professor of Management
(1) Yanadori, Yoshio and Marler, Janet. 2006. Compensation Strategy: Does Business Strategy Influence Compensation in High-Technology Firms? Strategic Management Journal, 27: 559-570. (In this piece we look at aligning innovation strategy with compensation strategy.)
(2) Another reading would be an older book by Gomez-Mejia and David Balkin " Compensation, Organizational Strategy and Firm Performance" published by South-Western in 1992. I think it is out of print but you may be able to get a used copy. It is still relevant.
Janet Marler
Associate Professor
School of Business
University at Albany-SUNY
David M. Brock and Ilene C. Siscovick
Global integration and local responsiveness in multinational subsidiaries: Some strategy, structure, and human resource contingencies, Asia Pacific Journal of Human Resources 2007; 45; 353
David M. Brock
Department of Business Management
Guilford Glazer School of Business and Management
Ben-Gurion University of the Negev
Your student might contact Incentive Magazine Incentive_Magazine@nielsencomm.net since the question is one that is of great interest to the magazine and they may be able to provide leads.
Erwin
(1) Ed Lawler's 1983 paperback book "Pay and organization development". I kept it on my active shelf for years as a practitioner and so did my VP Comp. & Benefits. It reflects his great knowledge and the research he did before he moved on to other OD subjects.
(2) An expose of executive compensation written by Graef "Bud" Crystal entitled In search of excess." (1991) Before he became a "turncoat" he was clearly the leading consultant to corporate Boards on executive compensation.
gene remoff
Human Capital Index studies by Watson Wyatt. I have the 2005 and 2001/2002 studies, and there is another one, the first one, that was conducted in 1999. One of the sections of the Index is Total Rewards and Accountability. I think hell find some information in this area that should be useful from all three studies. There might be some useful information in some of the other areas of the Index, as well.
Gary Lear, President & CEO RDS.net
Compensation: theory, evidence, and strategic implications. Book by Barry A. Gerhart, & Sara Rynes
Marylène Gagné
John Molson School of Business
Concordia University
Corinne Post, Ph.D.
Assistant Professor of Management
College of Business and Economics
Lehigh University
621 Taylor Street
Bethlehem, PA 18015
610.758.5882 (campus office)
908.766.9366 (home office)
http://www3.lehigh.edu/business/faculty/post.asp