This paper identifies a new methodology to design a strategy-based performance-related pay (PRP) system. The proposed methodology is the result of an action research intervention in a leading manufacturing company. Its main value is the capability to encourage the pursuit of company strategy also at the lowest levels of the organisation. The methodology is correlated with a group of tools supporting the operationalisation of each phase
The Performance-Related Pay Systems Design: a Strategy-Based Approach
GARENGO, PATRIZIA;PANIZZOLO, ROBERTO
2012
Abstract
This paper identifies a new methodology to design a strategy-based performance-related pay (PRP) system. The proposed methodology is the result of an action research intervention in a leading manufacturing company. Its main value is the capability to encourage the pursuit of company strategy also at the lowest levels of the organisation. The methodology is correlated with a group of tools supporting the operationalisation of each phase
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