Built to Change

Chapter 9Designing Reward Systems

Built-to-Change Strategy:Make Reward Practices Transparent

Organizations have the ability to reward individuals in a multitude of ways. Because they can vary both the kinds of rewards they give and the reasons for which they give them, there is an almost infinite number of approaches that organizations can take to rewarding individuals. The challenge for b2change organizations, and it is a tough and important one, is to develop an approach to rewards that improves organizational effectiveness and facilitates change.

Fortunately, there is a great deal of research that shows how reward systems affect organizational behavior and performance.¹ Before we begin looking at the specific reward systems that b2change ...