Organization 21C: Someday All Organizations Will Lead This Way

Extending Innovative Reward Systems to New Business Environments

Traditional reward systems in the early 20th century placed an emphasis on base pay and benefits. A major determinant of the level of pay and benefits was seniority. This approach was developed in private unionized companies and extended to nonunion companies, public sector organizations, and nonprofit organizations.

Table 8-1. Reward System Readiness Checklist for the 21st Century

Organization Readiness

The rewards philosophy and system dovetails with the business strategy and the goals of the organization (i.e., employee performance and goal achievement leads to organizational success and goal attainment). The short-term and long-term financial resources of the organization are ample ...