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Article
Realigning Fixed and Variable Pay in Sales Organizations: An Organizational Life Cycle Approach
Compensation & Benefits Review (2010)
  • Pankaj M Madhani
Abstract

This article explains the organizational life cycle, its impact on organization performance and role of an HR manager in effective compensation management. The stages in the life cycle are a key determinant of compensation strategies and their effectiveness in achieving organizational goals. The sales revenue, business risk and free cash flow of organizations change considerably during different stages of the organizational life cycle. Sales organizations must review, update and align their sales force compensation strategy in keeping with the organizational life cycle. Realigning fixed and variable pay in the compensation structure according to different stages of organizational life cycle will help organizations design an optimal compensation strategy for building competitive advantage.

Keywords
  • fixed pay,
  • variable pay,
  • job challenges,
  • selling role,
  • organizational life cycle
Publication Date
November, 2010
Citation Information
Pankaj M Madhani. "Realigning Fixed and Variable Pay in Sales Organizations: An Organizational Life Cycle Approach" Compensation & Benefits Review Vol. 42 Iss. 6 (2010)
Available at: http://works.bepress.com/madhani/80/