Critical Thinking essay

Critical Thinking essay

Critical Thinking



Developing a team-based compensation system is vital for a company because it helps in increasing productivity because a good compensation system motivates employees in a company. In developing a team-based compensation system, it is critical to consider various fundamental factors. One such factor to consider is the national culture (Pascarella, 1997). A national culture is vital to consider since it helps in determining whether the compensation system will pay emphasis on individuals in a team or will consider the collective team during compensation; different nations have varied ways of looking at compensation. For example, while some nations take emphasize on individuals, others consider a collective contribution.

Another critical factor to consider is who gets what. In deciding who gets what, teams should be given the responsibility of distributing recognition awards. Besides, project managers should be given rewarding powers from the onset of a team activity (Pascarella, 1997). This is crucial since team members will always be dedicated to their work because they fear giving up a task knowing that there is a reward before them. By making the project manager as the person who have rewarding powers will eliminate confusion on who to reward since every team member will need to be rewarded.

In addition, recognition of team output should be at the core of the compensation system. Both non-monetary and monetary recognition is critical since different team members have varied ways of appreciating their efforts. Furthermore, it is critical to consider rewarding both individuals in a team and the entire team (Pascarella, 1997). This motivates team members to continue showing their efforts in a company since they feel that their efforts have been appreciated. The team spirit is also maintained through rewarding a team for their efforts.


Pascarella, P. (1997, February). “Compensating Teams”, Across the Board.