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Theorists suggest that integrated manufacturing requires a compensation strategy that reinforces collective effort, professionalism, and flexibility. But several aspects of job design and organizational characteristics may mitigate a direct manufacturing-compensation relationship. Results of this study show virtually no direct effects of advanced technology, just-in-time inventory control, and total quality management on compensation practices. However, when integrated manufacturing is coupled with job characteristics that signal “knowledge work,” compensation systems tend to emphasize group-based incentives, salary, and seniority-based pay. Sources of organizational inertia moderate these relationships.
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Snell et al. (1994) studied this question.
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