|Hinduism||Movie Songs and Entertainment||Business, Finance, & Economy||General Knowledge||Health & Naturopathy||Vegetarian Recipes|
|YouSigma- the web's most extensive resource for information|
IBM’s Change in Pay Structure
In the 1990s, IBM’s emphasis on internal alignment (well-developed job evaluation plan, clear hierarchy for decision making, work/life balance benefits, policy of no layoffs) had served well during the last century when the company dominated the market for high-profit mainframe computers. But it did not provide flexibility to adapt to competitive changes in the new century. A redesigned IBM is a “solutions-led business offering diversified information technology capabilities.”
A new business strategy requires a new compensation strategy. At IBM, this meant creating a high-performance work culture (incentive pay), increasing employee and organization flexibility (work design), winning in the marketplace (attract/retain talent), and constantly containing costs. IBM changed its pay strategy and system to support its changed business strategy. And it changed from a doomed dinosaur to the “t-Rex of the technology industry.”
Companies can learn from this example, when business strategies change, pay systems should change, to reflect strategic and cultural transformation.
CITE THIS AS:
YouSigma. (2008). “IBM’s Change in Pay Structure." From http://www.yousigma.com.
Find charities worthy of your support and donate
|Copyright and Disclaimer|