Organization Structure and Compensation Scheme—he Case of Insurance Sales Channel and Multi-Level Marketing
Date Issued
2009
Date
2009
Author(s)
Wei, Chi-Chang
Abstract
In order to improve organizational performance and motivate their employees, firms often design incentive-based compensation schemes. In the literature, researchers always focus on the effect of compensation scheme on organizational culture, organizational performance, or other single dimension analysis, few of them addresses the issues from a more integrated viewpoint.esides, the method of classification, which is broadly used in other research field, is seldom being used in compensation domain. In order to discuss the effect of compensation policy design from a more integrated, strategic viewpoint, this research divide the compensation policy into four types, and discuss the differences between them.t is complicated in real operation of compensation policy design. Firms continue to design new reward policies to stimulate employee’s sales performance. Our research find that both the mix of fixed and variable pay and the level of organization development have significant impact on organizational structure, employee characteristic, organizational culture, product type, market and customer type.n sum, firms should design an optimal compensation policy depending on their organization’s goal. The better the compensation scheme fit in the organization and market structure, the more the positive impacts on performance.
Subjects
Compensation Plan
Insurance Industry
Multi-Level Marketing
Direct Selling
Organizational Structure
Organizational Culture
Customer characteristic
Employee Type
Type
thesis
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