The Alignment of Pay-For-Performance with the Strategy in Environment of Balanced Scorecard

Authors

  • Kleber Albuquerque de Vasconcelos Fead
  • Georgina Alves Vieira da Silva Professora do Programa de Mestrado em Administração do Centro Universitário UNA
  • Mário Teixeira Reis Neto Professor do Programa de Mestrado e Doutorado em Administração da Universidade Fumec
  • Kelly Soares Theotônio Universidade Fumec

DOI:

https://doi.org/10.5585/ijsm.v12i3.1933

Keywords:

Performance Indicators, Pay-for-Performance, Reward System, Balanced Scorecard.

Abstract

According to Kaplan and Norton (1997) a fixed compensation no longer meets the diverse expectations of reward and remuneration of staff. In this scenario, the economic agents seek business management tools that allow connecting individual performance to organizational performance. Taking these in considerations, this study aims to analyze if the criteria for the use of pay-for-performance is in accordance with the organization's strategy expressed by the indicators and goals used in the Balanced Scorecard (BSC). A qualitative approach was through a field survey of descriptive character, using, for data collection, a structured questionnaire with open and closed questions. The sample consists of 17 Brazilian companies in three business segments (heavy construction, industry and technology / services) and leaders in the market in which they operate. The results showed that, although it was clear the use of indicators associated with the use of BSC, the pay-for-performance models studied did not included in a balanced way, the indicators associated with BSC. There is a dissonance between corporate rhetoric and practice and mainly, the non-recognition of compensation management as a tool for alignment and support business strategies

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Author Biographies

Kleber Albuquerque de Vasconcelos, Fead

Professor da Pós-Graduação Lato Sensu da Fead Mestre em Administração pela Fead

Georgina Alves Vieira da Silva, Professora do Programa de Mestrado em Administração do Centro Universitário UNA

Doutora em Pscicologia pela Universidade de São Paulo.

Mário Teixeira Reis Neto, Professor do Programa de Mestrado e Doutorado em Administração da Universidade Fumec

Doutor em Administração pela Universidade Federal de Minas Gerais

Kelly Soares Theotônio, Universidade Fumec

Mestranda em Administração

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Published

01.09.2013

How to Cite

Vasconcelos, K. A. de, Silva, G. A. V. da, Reis Neto, M. T., & Theotônio, K. S. (2013). The Alignment of Pay-For-Performance with the Strategy in Environment of Balanced Scorecard. Revista Ibero-Americana De Estratégia, 12(3), 151–182. https://doi.org/10.5585/ijsm.v12i3.1933

Issue

Vol. 12 No. 3 (2013): July/September

Section

Articles

License

Copyright (c) 2013 Iberoamerican Journal of Strategic Management

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