A limited number of studies have addressed the idea of 'strategic' reward systems-the matching of compensation systems to firm's strategy. Prior research on this topic has been confined to U.S. firms, however, and a number of a number of key questions remain unanswered. Using a sample of 917 Employees from two large Swiss financial institutions, we found that pay systems are linked with Divisional strategic orientation, but in a different from than prior studies.
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