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AMERICAN JOURNAL OF MANAGEMENT
Culture, Competencies and Compensation: A Framework for Pay for Performance Incentives
Author(s): James Richard Guzak, Eungoo Kang
Citation: James Richard Guzak, Eungoo Kang, (2018) "Culture, Competencies and Compensation: A Framework for Pay for Performance Incentives," American Journal of Management, Vol. 18, Iss. 4, pp. 33-48
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The extant literature on pay for performance (PFP) compensation either focuses on factors dealing with
the implementation of those programs, or the viability of PFP as a universal ‘best practice’. Alternatively we suggest that different organizational culture types align with unique firm competencies, and are supported by specific pay systems. We contend that a ‘clan’ culture might best foster the employee competencies of adaptability, innovation and technical expertise, and best be supported by a skill-based pay (SBP) compensation system. Alternatively, a ‘market’ culture might best foster the competencies of customer orientation and performance orientation, and be best supported by PFP.
