Compensation and rewards systems promote employee behavior that ultimately becomes dominant in an organization. Such behavior influences employees' perceptions and beliefs about the organization’s value systems. It is vital to align the compensation and rewards strategy to support the attributes of a customer-focused culture. Compensation and rewards systems will positively influence behavior only if they are consistent with beliefs and expectations of the organization. Organizational culture and compensation/rewards system design function as complementary elements in directing employees toward achieving the strategic goals of the organization. This research develops a causal relationship between rewards systems and customer-focused culture; identifies matching compensation and rewards system for building a customer-focused culture; and proposes various supporting frameworks.
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