ABSTRACT

As society changes, so must its organizations; as organizations change, so must their pay systems. EDWARD E. LAWLER

Organizations are systems of interdependent human beings. Although this has been recognized implicitly by the writers in the previous sections, and explicitly by some, their main concern has been with the 'formal system' - its aims, the principles on which it should be constituted to achieve them, and the methods by which it should function. People have then been considered as one of the essential resources required to achieve the aims. But people are a rather special sort of resource. They not only work for the organization - they are the organization.