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`Gerhart and Rynes provide a thorough, comprehensive review of the vast literatures relevant to compensation. Their insights regarding the integration of economic, psychological and management perspectives are particularly enlightening. This text provides an invaluable tool for those interested in advancing our understanding of compensation practices' - Alison Barber, Eli Broad College of Business, Michigan State University
Compensation provides a comprehensive, research-based review of both the determinants and effects of compensation. Combining theory and research from a variety of disciplines, authors Barry Gerhart and Sara Rynes examine the three major compensation decisions - pay level, pay structure and pay delivery systems.
Revealing the impact of different compensation policies, this interdisciplinary volume examines: the relationship between performance-based pay and intrinsic motivation; implications of individual pay differentials for team or unit performance; the consequences of pay for performance policies; effect sizes and practical significance of compensation findings; and directions for future research.
Compensation considers why organizations pay people the way they do and how various pay strategies influence the success of organizations. Critically evaluating areas where research is inconsistent with common beliefs, Gerhart and Rynes explore the motivational effects of compensation.
Primarily intended for graduate students in human resource management, psychology, and organizational behaviour courses, this book is also an invaluable reference for compensation management consultants and organizational development specialists.
Table of Contents
Introduction to the Series vii
David A. Whetten
Acknowledgments ix
Introduction: The Enigmas of Compensation 1 (10)
Objectives 3 (2)
Outline of the Book 5 (6)
Differences in Pay Level: Why Do Some 11 (36)
Companies Pay More Than Others?
A Tale of Two Markets 11 (1)
The Case for Limited Discretion: 12 (4)
Neoclassical Economic Theory
Post-Institutional Economics: Theory 16 (5)
Meets Reality
Why It May ``Pay'' to Pay More 21 (6)
The International Dimension 27 (2)
Differences in Pay Levels for Particular 29 (2)
Jobs
Research on Pay Level Decision Making 31 (8)
Summary 39 (1)
Resource 2.1 40 (7)
Effects of Pay Level: What Do Employers Get 47 (34)
in Return for Higher Pay?
Theories of the Importance of Pay to 48 (11)
Individuals
What Do Employers Get in Return for 59 (18)
Higher Pay Levels?
Future Research 77 (4)
Pay Structure: Relative Pay Within 81 (34)
Organizations
The Role of Jobs and Job Evaluation in 84 (3)
Pay Structure
Theories of Differences in Pay Structure 87 (10)
Work-Life Incentives 97 (8)
Empirical Research on the Effects of Pay 105(3)
Structure
Future Research 108(7)
Pay Basis: Theories of Motivation and Pay 115(50)
for Performance
Effects of Pay and Motivational Programs 116(3)
on Performance: Meta-Analytic Results
Theories of Pay-Performance Relationships 119(1)
Psychological Versus Economic Perspectives 120(31)
Workforce Composition, Sorting, and 151(9)
Personality-Based Theories
Future Research 160(5)
Pay-for-Performance Programs: Empirical 165(62)
Evidence
Broad Policy Decisions 166(18)
Putting It All Together: Empirical 184(35)
Evidence on Pay Programs
Summary 219(2)
Future Research 221(6)
Pay Strategy 227(30)
Strategic Fit and Alignment 231(13)
Beyond Generic Strategies: The 244(7)
Resource-Based View of the Firm
Beyond Direct Earnings: Total Rewards 251(2)
Summary and Future Research 253(4)
Toward the Future 257(10)
Future Research 259(3)
Methodological Recommendations 262(5)
References 267(24)
Index 291(18)
About the Authors 309
