This paper is a literature review of the relationship of organizational culture and rewards systems.
Written in 2005; 950 words; 13 sources; APA; $ 33.95
Paper Summary:
This paper explains that, in general, the literature states that an organizational culture, which fosters communication and a collaborative or team oriented environment, is more likely to successful implement a rewards system. The author points out that, in a majority of organizations, the primary factors influencing pay structures include organizational culture, the presence of or lack of performance measurement systems, the organizational design (i.e. whether an organization is hierarchical or more democratically or team based) and the size of a company. The paper suggest that employee compensation and internal pay structure vary according to the profitability of the firm and the degree to which a firm hires more technically skilled the employees, who be compensated at a higher rate.
From the Paper:
"Johnson (2000) finds that supervisors perceptions of culture are generally much more positive than employees perceptions of culture, and that for a rewards program to be successfully implemented it is critical that the organizational climate be assessed more from an employees perspective than that of a manager. Johnson further descries the notion that a rewards based system is more feasibly adopted in a democratic vs. a hierarchical work climate where management and labor relations in general are perceived more favorably."
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