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The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design, 6th Edition by Dorothy Berger, Lance Berger

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19

Creating a Culture of Collaboration, Innovation, and Performance through Team-Based Incentives

LUIS R. GOMEZ-MEJIA

Mendoza College of Business, University of Notre Dame

MONICA RFANCO-SANTOS

Cranfield School of Management, Cranfield University

A growing number of organizations are moving away from the long-held belief that individual achievement and success, often through internal competition, are to be encouraged and reinforced. Research indicates that the use of teams can bring about a number of benefits: it greatly improves productivity,1 induces employees to set challenging and spontaneous group goals,2 facilitates communication across organizational barriers,3 improves financial performance,4 and engenders a social climate that promotes ...

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