Keywords: new pay, compensation and reward strategies, organisational change
Organisational rewards for a changing workplace: an examination of theory and practice
In response to a rapidly changing business environment, organisations are attempting to implement fundamental changes in how they structure and manage themselves. The current academic and applied literature highlights various initiatives being employed by organisations in their change efforts. These include total quality management, re-engineering, de-layering, downsizing, employee empowerment, teamwork, and customer service. However, empirical evidence suggests that some organisations are more successful than others in initiating and sustaining meaningful change. One potential explanation for such variations lies in the manner in which organisations reward their employees. Some organisations, realising that the reward systems should be congruent with organisational strategy, have begun moving away from traditional reward systems and are increasingly adopting new pay and reward strategies. In this study, we review the relevant theoretical and empirical literature and examine the reward strategies of two companies trying to grapple with organisational change.