Teams have become a popular way to organize business because they offer companies the flexibility they need to meet the demands of the ever changing business environment. While many companies have been quick to organize their workforce into teams, they have not been as eager to implement team‐based compensation systems. The problem is that if team‐based organizations continue to utilize old, individually‐oriented pay systems, they will not realize fully the benefit of highly cooperative and motivated work teams. The purpose of this paper is to examine the ÒidealÓ team compensation system. To do this, the paper will first review the basics of both teams and compensation and then explore the ideal team compensation system from three levels ‐ framework, critical elements, and other, operational considerations. Given the scope, this entire review will be divided into two separate articles. This article, Part I, provides information through the ideal team compensation system framework.
Team Performance Management – Emerald Publishing
Published: Aug 1, 1998
Keywords: Compensation; Effectiveness; Measurement; Teams
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