Annotated Bibliography

Annotated Bibliography

Madhani, P. M. (2014). Aligning compensation systems with organization culture. Compensation & Benefits Review, 46(2), 103-115. DOI: 10.1177/0886368714541913

In this article, Madhani analyzes how compensation strategies are used in different types of organizational cultures. The author also suggests effective compensation structures that can be employed by each type of culture. He notes that compensation system designs and organizational culture act as critical aspects for organizations to achieve their strategic goals. Several negative outcomes are likely to arise if the organization’s culture is not aligned with compensation systems. The main purpose of this study was to analyze the effect of compensation systems on organizational culture and vice versa. One of the major hypotheses of this article is that organizational culture is affected by the type of compensation system employed as well as the outcomes and behaviors that organizations choose to punish and reward. Another hypothesis is that compensation systems developed, designed, managed, and communicated by organizations can negatively or positively affect their culture. In his research design, Madhani conducts a text analysis of different articles that provide critical information to support his findings about the topic. The results of his findings indicate that compensation systems are critical for organizational culture since they can hamper, support, or alter the direction taken by organizational culture.

I think this article is suitable for the research topic I have chosen, and I will utilize it to explore how different aspects concerning the link between organizational culture and compensation strategies. The data contained in this source can be used to provide managers with different frameworks for managing the costs of compensation and improving their organization’s performance. This source is trustworthy since it was published in a reputable academic journal and is current because it was published in 2014. Additionally, the author’s ideas and discussions were founded by a scholar from the ICFAI Business School (IBS). Readers are allowed to broaden their understanding of this subject by taking into account various points of view from researchers.


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