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Economic compensation compositions preferred by R&D personnel of different R&D types and intrinsic values

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In order to enhance R&D performance, R&D managers make sure that R&D personnel are satisfied with their compensation, both economic and non–economic. An R&D compensation scheme would consist of many complex factors. In this research, we focus on ‘compensation composition’ as such a factor for the economic compensation system, i.e., the mix of compensation components such as team (or organization) performance based, individual (R&D personnel) performance based, and fixed (seniority based) portion of economic compensation. As part of non–economic compensation, intrinsic values such as social status and self–actualization perceived by the R&D personnel are influencing their level of satisfaction with the entire compensation system. Another critical factor we consider here is the difference in R&D types: there are three R&D types, i.e., basic, applied, and commercial R&D. We put forth two sets of propositions. First, there is statistically significant correlation among R&D personnel’s job satisfaction, performance measurement satisfaction, and compensation satisfaction. Second, depending on the types of their R&D activities, R&D personnel prefer a certain composition of economic compensation. In addition, the relationships are mediated by whether the R&D personnel feel intrinsic values of their jobs.

Document Type: Original Article


Affiliations: Graduate School of Management, Korea Advanced Institute of Science and Technology (KAIST)

Publication date: January 1, 2002


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