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Congruence between technology and compensation systems: implications for strategy implementation
Author(s) -
Shaw Jason D.,
Gupta Nina,
Delery John E.
Publication year - 2001
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.165
Subject(s) - teamwork , incentive , congruence (geometry) , seniority , compensation (psychology) , flexibility (engineering) , business , marketing , operations management , process management , industrial organization , economics , engineering , microeconomics , management , psychology , social psychology , psychoanalysis , aerospace engineering
This paper examines the interactive relationship between the use of integrated manufacturing and compensation practices in predicting several aspects of plant performance in the concrete pipe industry. We predicted that compensation practices reinforcing collective effort, teamwork, and flexibility (team incentives and skill‐based pay) enhance the effectiveness of integrated manufacturing systems (total quality management and advanced manufacturing technology), while practices inhibiting cooperation and teamwork among employees (individual incentives and seniority‐based pay) impede it. Results provide moderate support for the congruence model across several measures of plant effectiveness (labor hours per ton, lost‐time accidents, perceptual performance, and customer satisfaction). Implications of the research are addressed. Copyright © 2001 John Wiley & Sons, Ltd.