Section Five- Comparatively high compensation contingent on
organizational performance. - Extensive training.
- Reduced status distinctions and barriers, including
dress, language, office arrangements, and wage
differences across levels. - Extensive sharing of financial and performance
information throughout the organization.^1
Empirical evidence on the performance effects of these
and several other human resource practices will be presented in
this section. Research results on whether such practices
actually have a positive impact on various measures of firm
performance will be presented by the major categories of
individual practices.
Compensation
Despite the importance of compensation and financial
incentives to employees and firms, there has been a surprising
lack of good research on its performance effects. Furthermore,
traditional compensation practices have come under criticism:
Employees today are expected to work in teams
rather than solely on their own. They are
expected to keep learning new skills and to
assume broader roles. They are expected to take