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Merit Pay, Differentiation and the Tragedy of the Commons

December 8, 2008
Related Topics: Variable Pay, Compensation Design and Communication, Featured Article, Benefits
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Commentary: Merit pay can't succeed when the short-term interests of individuals (such as managers protecting the interests of their direct reports) are at odds with the long-term interests of the group (such as an organization striving for real performance differentiation). But what if those managers were held accountable for their merit-pay choices?
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