Organizational Culture/Rewards System
There are numerous links made in research regarding organizational culture and a rewards system. A majority of the studies available suggest that in general an organizational culture that fosters communication and a collaborative or team oriented environment is more likely to successful implement a rewards system, and more likely to have a rewards system in place than one that does not (Burke, 1995).
Malekzadeh and Nahavandi (1993) show that cooperative behavior and productivity can be encouraged when the organizational culture is one that is built on employee participation and commitment, and that organizational reward systems typically encourage a culture that is cooperative and collaborative in nature (p.22). Further they argue that when an organizational culture supports a reward system employees learn to behave in a collaborate manner but still value competition and consider it a key success factor related to high performance (Malekzadeh & Nahavandi, 1993).
Boughton, Gilley & Maycunich (1999) suggest that the formulation of a compensation and reward philosophy that "anchors development of long-term compensation and reward strategies" is critical to an organization success and that compensation and rewards should be culturally linked to employee growth and development in a manner that enhances organizational performance capacity (p. 140).
As organizations are every changing it is also critical that a reward philosophy is flexible and takes into account the values, guiding principles as well as strategic goals and objectives of the organization or the system will ultimately fail (Boughton et. al, 1999:140).
An organizational culture that supports teamwork and a team based approach to problem solving is more likely to support a rewards-based system that acknowledges the accomplishments of individuals and groups alike (Ezzamel & Willmott, 1998:358).
The stability and success of a rewards system often depends on the extent to which a rewards-based program is adopted and incorporated into an organizations culture (Cesaria, Morley & Shockley-Zalabak, 1997; Shockley-Zalabak...
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