MGT 386: Chpt 14

dual career ladders

Presence of two different ways to progress in an organization, each reflecting different types of contribution to the organization's mission. The managerial ladder ascends through increasing responsibility for supervision or direction of people. The professional track ascends through contributions of a professional nature that do not mainly entail the supervision of employees.

maturity curve

a plot of the empirical relationship between current pay and years since a professional has last received a degree (YSLD), t

agency theory

a theory of motivation that depicts exchange relationships in terms of two parties: agents and principals. According to this theory, both sides of the exchange will seek the most favorable exchange possible and will act opportunistically if given a chance. As applied to executive compensation, agency theory would place part of the executive's pay at risk to motivate the executive (agent) to act in the best interests of the shareholders (principals) rather than in the executive's own self-interests.

base salary

the basic cash compensation that an employer pays for the work performed. Tends to reflect the value of the work itself and ignore the differences in individual contributions.