Strategic Human Resource Management

(Barry) #1
Section Four

members may help train or motivate those who have not yet
acquired the necessary skills.^32


One type of team setting that is likely to appear more
frequently in the future is the research and development team.
There is evidence that team-based pay systems have worked
well in such settings. One study of research scientists and
engineers specifically examined the effectiveness of team-
based bonuses. The study examined the impact of such pay on
several criteria of effectiveness, including performance on
projects as well as individual performance, satisfaction with
pay, and a measure of cognitive withdrawal or propensity to
leave. The study found that team pay was superior to
individual-based bonuses and merit pay when evaluated
according to these criteria. In contrast, the individual-based
forms of compensation were not significantly related with the
criteria. Further, other aggregate compensation in the form of
stock ownership plans and profit sharing tended to enhance the
retention of employees. With any group or team-based pay
system, there is always a concern that some individuals may
not do their share of work, preferring instead to be free riders
on the efforts of more productive members. Interestingly, this
study found that team members did not become free riders.
Potential explanations for the absence of such behaviors
include the combination of challenging work and the intrinsic
motivation of professional employees.^33

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