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

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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 ...