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The last story, for example, tells of four boys in Suriname two of whom bragged that their respective fathers were the best traders in town. The third, however, smiled and said that his father had them beat and the fourth boy agreed: He had with one ear of corn purchased a cow, a horse and a donkey. The father had indeed started with one ear of corn, and had indeed purchased a cow, a horse and a donkey--but not all at once, as the other boys supposed. Rather, he had planted the corn ear, sold his crop, bought a cow, sold it and bought a horse and sold it and bought a donkey.
Similarly, another tale speaks of a poet named Mutanabbi who passed by Zubeida's house one day and decided to return that evening to propose that they be married. Halfway home, he encountered a handsome young man who was on his way to see Zubeida, "the most beautiful woman in the city," whom he also wanted to marry. Mutanabbi was afraid of losing his chance, so he told the young man that he had just moments ago seen Zubeida kissing a wealthy man. The young man left, feeling lost. After learning that Mutanabbi had married Zubeida, he accused the former of lying. After all, if Zubeida had really kissed a wealthy man, why would she have chosen Mutanabbi? Why, the wealthy man she kissed was her father, of course.
Another story features a Muslim holy man on the island of Celebes, who found a dark cave and crawled inside to escape from warring enemies. "If it hadn't been for the spider," he told his friends afterwards, "I surely would have been caught and killed." No one believed him, of course. But he had spoken the truth along with a lie. The spider had spun a web over the mouth of the cave, leading the holy man's enemies to believe that no one could possibly be inside. The man, however, had neglected to tell his friends was how the spider saved him.
(This particular tale reminds me of the Jewish tale of David, who as a boy had questioned why God made spiders. Unlike the Muslim tale, however, the Midrash explains that God gave even the smallest creature a purpose. When David was grown, King Saul became angry with David and tried to kill him. David fled and hid in a cave. A spider spun his web across the cave's mouth. That night, soldiers passed the save. King Saul reasoned that no man could hide there without tearing the web. And David thanked God for making spiders.)
From this book, children learn that different traditions are often similar. They also learn to carefully examine "facts." Things presented as truth may compose only part of the picture. Alyssa A. Lappen
The strength of the book is that it extracts and builds on key research findings in a way that advances the body of compensation knowledge (in a way pleasing to academics) and is relevant to practitioners. Chapter 2 on Strategic Perspectives and Chapters 9 & 10 on Pay for Performance best exemplify the confluence of research relevance and tactical usefulness.
It is absolutely a must read for anyone who is a student of organizations or who attempts to manage one (not just compensation managers).
This text is really designed for those compensation practioners that want to understand how compensation might be used to supply a sustainable competitive advantage. The authors' deep reading and involvement in both research and consulting with business shows here. They worked very hard to allow us to absorb the research implication and to use the tools, without our having to read the full body of research or to invent the tools.
The authors balance the research perspective by developing a working model and applying it to real world cases where they have consulted. The reader is then challenged to apply the model to case situations presented in the book and to their work practice.
Lastly, some things i've learned from this book:
1. you get what you pay for ... -- the research clearly shows that pay is a key motivator and that people will behave as they're incentivized by their pay systems. -- the implication is that EVERY compensation system, no matter whether it's planned or evolves, supplies a network of incentives that in part direct employee behavior and business outcomes.
2. compensation systems can be designed to support a sustainable competitive advantage. -- through understanding the motivational incentives and how they tie into business strategy. -- a "universalistic" compensation approach that says there's one right answer supplies some good practices, but doesn't fully explain observed motivational differences.
3. Compensation must tie tightly to the work process (work flow) or it will surely fail in it's objectives. -- how many companies talk about changing their cultures while they don't change or even understand the motivational impacts of their pay plans?
4. There's no right answer, only a good model to help. -- is a tournament pay system (tied to an individual / hierachical workflow) better than an egalitarian system (tied to a team workflow)? it depends ... and that's where Milkovich/Newman fill in the blanks.
A M-U-S-T read for anyone participating in making compensation decisions - whether you're in school or already a compensation vice president.
List price: $17.95 (that's 30% off!)