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Explaining team-based pay - a contingency perspective based on the organizational life cycle, team design, and organizational learning literatures

By: BALKIN, David B.
Contributor(s): MONTEMAYOR, Edilberto F.
Material type: materialTypeLabelArticlePublisher: 2000Human Resource Management Review 10, 3, p. 249-269Abstract: Using a contingency perspective that combines the organizational life cycle, team design, and organizational learning literaturs, a total of 12 propositions are developed to explain and predict the application of team-based pay in organizations. In essence, this article argues that financial capabilities (associated with various stags in the life cycle) and human capital capabilities represented by factors leading to an organization`s absorptive capacity) should have a major impact on the application of team-based pay. It is also expected that situational favorablness for team pay (as determined by team task design) should influence the likelihood of its application in an organization
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Using a contingency perspective that combines the organizational life cycle, team design, and organizational learning literaturs, a total of 12 propositions are developed to explain and predict the application of team-based pay in organizations. In essence, this article argues that financial capabilities (associated with various stags in the life cycle) and human capital capabilities represented by factors leading to an organization`s absorptive capacity) should have a major impact on the application of team-based pay. It is also expected that situational favorablness for team pay (as determined by team task design) should influence the likelihood of its application in an organization

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