Willamette Industries: No Pay at Risk Compensation Harvard Case Solution & Analysis

Willamette Industries, a large wood products and pulp and paper producers, traditionally used to pay short-term risk, as part of its compensation approach. This means that there are no sales commissions, gainsharing, or short-term bonus payments, anyone anywhere in the company. David Morthland, vice president of human resources and labor relations, were asked to review the practice in the context of trends in the industry as a whole to greater use of contingent compensation. Case, the rationale for the current practice of Willamette in pay in light of its particular culture, business strategies, and other management practices. Can be used alone or with other cases illustrating the various practices of payment to foster discussion of pros and cons of different approaches to pay. "Hide
by Jeffrey Pfeffer Source: Stanford Graduate School of Business 13 pages. Publication Date: Aug 01, 1998. Prod. #: HR9-PDF-ENG

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