7. Information technology implementation: The need for compensation system congruency

Abstract

This paper examines the necessity of making compensation changes concurrently with information technology implementation that increases the requirements of incumbent jobs. The paper reviews several theoretical frameworks that highlight corollary effects of technology change on other organizational elements and underscore that organizational change programs do not occur in isolation. Following, organizational justice literature is reviewed as a theoretical background for assessing employee evaluations of, and reactions to, the absence of compensation adjustments in technology change. An organizational field study, utilizing a pretest-posttest control group design, was conducted to test a number of hypothesized effects resulting from a failure to adjust compensation for affected jobs during the implementation of a new human resource information system. The results indicated increases in perceptions of procedural injustice, distributive injustice, and dissatisfaction with the structure and administration of the compensation system. A discussion of the results and implications of the study are presented.

Citation

Dulebohn, J.H. (2003), "7. Information technology implementation: The need for compensation system congruency", Advances in Human Performance and Cognitive Engineering Research (Advances in Human Performance and Cognitive Engineering Research, Vol. 3), Emerald Group Publishing Limited, Leeds, pp. 153-185. https://doi.org/10.1016/S1479-3601(02)03007-2