Chapter 5
Organization-wide Variable Pay
The Missing Link in Managing the Value Chain
Key Points
â¢The role of identity economics in establishing organization-wide variable pay
â¢Integrating identity economics with the expectancy model of motivation
â¢The chain reaction and reinforcement dynamic of organization-wide variable pay
â¢The self-financing nature of variable compensation
â¢Some existing models of variable compensation
â¢A recommended model based on simplicity, a culture of collaboration, and management commitment
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