【Topic】How Strategic Is Strategic Pay? The Case Of Employee Profit Sharing

【Speaker】Tony Fang, Assistant Professor in Human Resource Management at School of Administrative Studies, York University, Canada.

【Time】2008-5-12 14:00-15:30

【Venue】Room 302, Shunde Building, Tsinghua SEM

【Language】Chinese/English

【Organizer】Dept. of Human Resources and Organizational Behavior/Dept. of Economics

【Target Audience】

【Background Information】

Based on two panels of longitudinal data drawn from consecutive time periods, this paper examines whether there is any link between an establishment in strategic context and its subsequent adoption of employee profit sharing. Results indicate that pursuit of a cost leadership business strategy increased the likelihood of profit sharing adoption in both time periods, thus providing evidence for vertical strategic alignment. Evidence for horizontal strategic alignment is temporally mixed, as pursuit of a high-involvement human resources strategy increased the likelihood of profit sharing adoption in the first time period but not in the second. Evidence for internal (within compensation strategy) alignment is strong, as a high-wage compensation policy is a strong predictor of profit sharing adoption in both time periods.

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