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Healing the Wounds: Overcoming the Trauma of Layoffs and Revitalizing Downsized Organizations by David M. Noer

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10.3. From Rewarding Performance with Promotion to Rewarding Performance with Acknowledgment of Relevance

A fundamental old paradigm assumption was that the basic reward for employee performance was promotion. In reality, many organizations used promotion to reward factors other than performance, such as loyalty, fitting in, and length of service. Under the old employment contract, organizations developed compensation systems that were hierarchical in scope and linear in design. The way to get more money was to get promoted. Status symbols such as office size, reserved parking spaces, and accessibility to special dining areas were also linked to employees' hierarchical levels. Job descriptions were linked to levels and, in classic Weberian bureaucratic ...

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