Integrating customer orientation, employee compensation and performance management: a conceptual framework

Tuzovic, Sven and Bruhn, Manfred. (2005) Integrating customer orientation, employee compensation and performance management: a conceptual framework. International Journal of Business Performance Management, 7 (3). pp. 255-274.

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Official URL: http://edoc.unibas.ch/45458/

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Compensation systems are an essential tool to link corporate goals such as customer orientation with individual and organisational performance. While some authors demonstrate the positive effects of incorporating nonfinancial measures into the compensation system empirically, companies have encountered problems after linking pay to customer satisfaction. We argue that reasons for this can be attributed to the measurement of customer satisfaction as well as to the missing link between customer satisfaction and customer retention and profitability in theses cases. Hence, there is a strong need for the development of an holistic reward and performance measurement model enabling an organisation to identify cause-and-effect relationships when linking rewards to nonfinancial performance measures. We present a conceptual framework of a success chain driven reward system that enables organisations to systematically derive a customer-oriented reward strategy. In the context of performance evaluation, we propose to rely on integrated and multidimensional measurement methods.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Ehemalige Einheiten Wirtschaftswissenschaften > Marketing und Unternehmensf├╝hrung (Bruhn)
UniBasel Contributors:Bruhn, Manfred
Item Type:Article, refereed
Article Subtype:Research Article
Note:Publication type according to Uni Basel Research Database: Journal article
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Last Modified:16 Dec 2016 09:57
Deposited On:16 Dec 2016 09:57

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