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"The authors artfully synthesize complex scholarly articles from economics, psychology, and sociology. The organization of the book is exceptionally transparent... Compensation should be accessible to a wide range of readers who appreciate a multidisciplinary perspective on organizational issues... I cannot emphasize enough how effectively Gerhart and Rynes discuss compensation thoughout this book. As an experienced academic researcher, I have already benefited tremendously from my first reading of the book . It is a must-read, and I recommend it without reservation to instructors, researchers, and students."
--Industrial and Labor Relations Review
"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: Theory, Evidence, and Strategic Implications 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 L. 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
Directions for future research
Compensation: Theory, Evidence, and Strategic Implications 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 behavior courses, this book is also an invaluable reference for compensation management consultants and organizational development specialists.
Contents
Introduction to the Series - David A. Whetten
Acknowledgments
1. Introduction: The Enigmas of Compensation
Objectives
Outline of the Book
2. Differences in Pay Level: Why Do Some Companies Pay More Than Others?
A Tale of Two Markets
The Case for Limited Discretion: Neoclassical Economic Theory
Post-Institutional Economics: Theory Meets Reality
Why It May "Pay" to Pay More
The International Dimension
Differences in Pay Levels for Particular Jobs
Research on Pay Level Decision Making
Summary
Resource 2.1
3. Effects of Pay Level: What Do Employers Get in Return for Higher Pay?
Theories of the Importance of Pay to Individuals
What Do Employers Get in Return for Higher Pay Levels?
Future Research
4. Pay Structure: Relative Pay Within Organizations
The Role of Jobs and Job Evaluation in Pay Structure
Theories of Differences in Pay Structure
Work-Life Incentives
Empirical Research on the Effects of Pay Structure
Future Research
5. Pay Basis: Theories of Motivation and Pay for Performance
Effects of Pay and Motivational Programs on Performance: Meta-Analytic Results
Theories of Pay-Performance Relationships
Psychological Versus Economic Perspectives
Workforce Composition, Sorting, and Personality-Based Theories
Future Research
6. Pay-for-Performance Programs: Empirical Evidence
Broad Policy Decisions
Putting It All Together: Empirical Evidence on Pay Programs
Summary
Future Research
7. Pay Strategy
Strategic Fit and Alignment
Beyond Generic Strategies: The Resource-Based View of the Firm
Beyond Direct Earnings: Total Rewards
Summary and Future Research
8. Toward the Future
Future Research
Methodological Recommendations
References
Index
About the Authors
