"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.
|Outline of the Book|
|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|
|Theories of the Importance of Pay to Individuals|
|What Do Employers Get in Return for Higher Pay Levels?|
|The Role of Jobs and Job Evaluation in Pay Structure|
|Theories of Differences in Pay Structure|
|Empirical Research on the Effects of Pay Structure|
|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|
|Broad Policy Decisions|
|Putting It All Together: Empirical Evidence on Pay Programs|
|Strategic Fit and Alignment|
|Beyond Generic Strategies: The Resource-Based View of the Firm|
|Beyond Direct Earnings: Total Rewards|
|Summary and Future Research|