Rewards system developments: pay for performance in knowledge-intensive industries in China Online publication date: Wed, 12-May-2010
by Chris Rowley, Qi Wei
J. for Global Business Advancement (JGBA), Vol. 3, No. 2, 2010
Abstract: Reward systems, and the role of 'performance' within them, are often a source of contention. However, post-2008 global 'credit crunch' and the perceived role of pay in that, systems have come under even more scrutiny. Yet, pay programmes are not determined simply by forces in the external environment. Instead, managers play a significant role in their adoption, modification and termination. Nevertheless, there is little literature on the contributions of line managers in pay for performance practices in the Chinese context. This paper explores line managers' perception of pay for performance and the key supports and barriers to their involvement in pay design and implementation. A multi-case study approach was conducted in China's non-public sector knowledge-intensive firms. The findings show that project intensification could be an important factor that impacts on line managers' understanding and responsibility in rewards systems and pay for performance.
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