Pay Strategy: Resolving Tension between Institutional Conformity and Organizational Differentiation
Published: 2019
Author(s) Name: Amita Shivhare |
Author(s) Affiliation: Xavier School of Management, Jamshedpur, India.
Locked
Subscribed
Available for All
Abstract
The standard choices before organizations
for its pay practices
are either to abide by institutional
norms or to incorporate firm-specific
behavior (idiosyncratic fit)
or to follow a combination of the
two. Organizations’ choice of a
practice is based on the human
capital it has or the ones it seeks
to acquire. This article examines
how workforce characteristics
and job characteristics among
gold, white, pink and blue-collar
workers act as the key to determine
organizational pay strategy.
The article outlines the pay strategy
continuum based on
workforce characteristics and
use Institutional Theory and Resource
Dependence Theory to
support the propositions. It concludes
that a combination of the
three based on the distribution of
various worker categories would
contribute more significantly to
organizational efficacy.
Keywords: N.A.
View PDF