Human Resource Management 7th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright

Exercise 9

Your organization has two business units. One unit is a long-established manufacturer of a product that competes on price and has not been subject to many technological innovations. The other business unit is just being started. It has no products yet, but it is working on developing a new technology for testing the effects of drugs on people via simulation instead of through lengthy clinical trials. Would you recommend that the two business units have the same pay programs for recognizing individual contributions Why