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Compensation Strategy Determinants and Contingencies in Hightechnology Organisations

Compensation Strategy Determinants and Contingencies in Hightechnology Organisations The challenge facing human resourcecompensationprofessionals in the peopleintensive, hightechnologyindustry, will be the development ofa model and strategy intended to respond to thespecific needs of unique professionals engaged inhigh growth organisations. This article examinesthe complex purposes of compensation, includingthe eight factors contributing to the determinationof compensation levels, while consideringconstraints and contingencies. Jobbasedevaluation and personbased systems will beexamined together with individual and groupincentive plans as they impact upon growth cyclesof hightech firms. The innovative nature of hightechnologyorganisations can be directly linked tocompensation strategies for management. Thesehigh growth firms utilise a most uniquecompensation approach which is fundamentallydifferent from normative organisations. They 1use annual incentives, but emphasise the longerterm 2 emphasise stock rather than longtermcash plans 3 use stock options where themanager benefits only if stock prices increase 4use a much larger proportion of stock than typicalfirms provide and 5 encourage much wider useof stock among a broad employee group.Compensation occupies as significant a niche asarticulate strategies and leading edgeinnovativeness, for hightechnology organisations. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Manpower Emerald Publishing

Compensation Strategy Determinants and Contingencies in Hightechnology Organisations

International Journal of Manpower , Volume 12 (8): 9 – Aug 1, 1991

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0143-7720
DOI
10.1108/01437729110007062
Publisher site
See Article on Publisher Site

Abstract

The challenge facing human resourcecompensationprofessionals in the peopleintensive, hightechnologyindustry, will be the development ofa model and strategy intended to respond to thespecific needs of unique professionals engaged inhigh growth organisations. This article examinesthe complex purposes of compensation, includingthe eight factors contributing to the determinationof compensation levels, while consideringconstraints and contingencies. Jobbasedevaluation and personbased systems will beexamined together with individual and groupincentive plans as they impact upon growth cyclesof hightech firms. The innovative nature of hightechnologyorganisations can be directly linked tocompensation strategies for management. Thesehigh growth firms utilise a most uniquecompensation approach which is fundamentallydifferent from normative organisations. They 1use annual incentives, but emphasise the longerterm 2 emphasise stock rather than longtermcash plans 3 use stock options where themanager benefits only if stock prices increase 4use a much larger proportion of stock than typicalfirms provide and 5 encourage much wider useof stock among a broad employee group.Compensation occupies as significant a niche asarticulate strategies and leading edgeinnovativeness, for hightechnology organisations.

Journal

International Journal of ManpowerEmerald Publishing

Published: Aug 1, 1991

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