Compensation for Teams: How to Design and Implement Team-Based Reward Programs

Steven E. Gross. Compensation for Teams: How to Design and Implement Team-Based Reward Programs. New York: AMACOM, 1995, 272 pages, $65.00.

In this book, Steven Gross presents a series of hypotheses-a theory-stipulating how to design pay systems to support different kinds of teams in the work place. The book deals with a very important subject. As has been discussed often, many organizations are using employee teams to perform key functions and/or address important business challenges. Although the use of teams has spread rapidly, there has also been speculation that traditional compensation and reward systems, which arose in organizations emphasizing individual work, may not be suitable (or may even be detrimental) when work is organized around teams (Lawler & Cohen, 1992; Montemayor, 1994; Saunier & Hawk, 1994; Shaw & Schneier, 1996).

In the first three chapters, Gross presents the foundation for his theory: a three-way classification for teams used in the work place. Chapters 1 and 2 deal with culture and team types. Gross argues there are three distinct types of teams in the workplace and there is one kind of culture that best fits each type of team. Parallel teams (problem-solving teams that do not require full-time member involvement) would belong in the conservative functional culture with bureaucratic specialization and hierarchical demarcation for authority and power. Process or work teams (requiring full-time involvement and permanent membership) would belong in the process culture that empowers employees and focuses their attention on customer satisfaction and continuous improvement. Finally, project teams belong in a time-based culture that emphasizes entrepreneurship and rapid response.

In Chapter 3, Gross presents the catalog of behavioral competencies developed by Hay/McBer Consulting. Gross argues the three types of teams require emphasis on different sets of competencies and suggests organizations should ensure first that team members acquire the pertinent competencies and then design pay and reward systems...