Critical evaluation of the concept
of reward strategy
The problem with a strategic approach to reward is
that it can promise more than it achieves. This con-
tradicts the main message delivered by US writers
such as Lawler (1990) in his Strategic Pay and
Schuster and Zingheim (1992) in their The New
Pay, which was that it provides a powerful lever
for improving business performance. As Thompson
(1998: 70) commented:
The most that companies can hope to do in their
approach to reward is to make sure that it does
not distort the relationship [between management
and employees]. Managing reward is thus a job of
damage limitation and perhaps not the ‘strategic
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