Explaining Team-Based Pay: A Contingency Perspective Based on the Organizational Life Cycle,Team Design,and Organizational Learning Literatures |
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| Institution: | 1. School of Economics and Management, Tongji University, Shanghai 200092, PR China;2. School of Management, Shanghai University, Shanghai 200444, PR China;3. Department of Industrial Engineering and Engineering Management, Western New England University, Springfield, MA 01119 USA;4. School of Mechatronic Engineering and Automation, Shanghai University, Shanghai 200444, PR China;1. Department of Shipping and Transportation Management, National Taiwan Ocean University, No. 2, Pei-Ning Road, Keelung 202, Taiwan;2. School of Economics and Business, 226 Netzer Administration Bldg., SUNY College at Oneonta, Oneonta, NY 13820, United States |
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| Abstract: | Using a contingency perspective that combines the organizational life cycle, team design, and organizational learning literatures, a total of 12 propositions are developed to explain and predict the application of team-based pay in organizations. In essence, this article argues that financial capabilities (associated with various stages in the life cycle) and human capital capabilities (represented by factors leading to an organization's absorptive capacity) should have a major impact on the application of team-based pay. It is also expected that situational favorableness for team pay (as determined by team task design) should influence the likelihood of its application in an organization. |
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