Abstract

With the development and extensive application of project team work under the matrix organizational structure, the traditional compensation system based on the job-evaluation method has been greatly challenged. The job-evaluation method is designed to compliment functional or divisional structure in a static or at least stationary context, which is often ineffective and even counterproductive in the quick changing environments.
This paper is an attempt to design a dynamic compensation model by setting a “project adjusting index” based on the key diversified project features. The objective is to primarily rationalize the firm’s pay structure, and to make project employee could be paid according to their contributions to the organization on the norm of equity.

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