CORRELATION BETWEEN ORGANIZATIONAL CULTURE AND COMPENSATION STRATEGIES USING CHARLES HANDY’S TYPOLOGY
Keywords:
compensation strategy, organizational culture, cultural typology, cultural fit.Abstract
This study identified the correlations between compensation strategies and the organizational culture typology proposed by Handy (2003), based on the degree of formalization and centralization that identifies the culture: Zeus (power), Apollo (roles), Athena (task) and Dionysus (person).
A survey was performed of compensation managers at 76 companies associated with the Salary Information Exchange Group (GRUPISA), and the questionnaires with a construct composed of twelve organizational compensation components were analyzed using Pearson’s correlation coefficient and multiple regression
We concluded that the compensation variables were correlated in a different fashion with each of the culture types: (i) “Zeus” organizations should emphasize behavioral factors in all spheres of the compensation system; (ii) in the case of “Apollo” organizations the emphasis should be on growth and development opportunities; (iii) in “Athena” organizations the focus should be on financial rewards, and, “Dionysus” organizations should place emphasis on the quality of compensation.
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