Management by objectives and performance-based pay

Ulrich H. Krause

2003

Management by objectives has served as a common management and compensation tool for some time now. Whether MbO agreements can also be used for employees bound by collective wage agreements has recently become a matter of debate.

In his thesis "Management by objectives and performance-based pay. Structuring options and restrictions under collective wage agreements" Ulrich H. Krause analyzes the structuring options and restrictions of MbO agreements and performance-based pay schemes for employees under collective wage agreements. He takes both HR policy and labor legislation aspects into account. He develops recommendations for enterprises that incorporate the different views of both stakeholders (employers and employees). His recommendations are based on theories and supported by empirical studies.