ELEVENCompensation andPerformance Evaluation

Overturning the Class System

Two elderly ladies leaving a restaurant:Alice: The food in that restaurant is terrible!Ruth: I know, and the portions are so small!                      —Woody Allen


A COMPENSATION SYSTEM is like a bad marriage. Not happy, but we fear that if we get out of it and look for something better, we might end up worse off than before. So it is with the sacred ground of how we pay people. We have energy about pay that far transcends what you would expect from an economic transaction between employee and employer. Our feelings about it rank right up there with births, weddings, and the big bang theory.


LOOKING AT OUR paycheck, we draw conclusions about self-worth, justice in ...

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