アラビアン・ジャーナル・オブ・ビジネス・アンド・マネジメント・レビュー

Competency-Based Pay at the Heart of the New Strategic Management: A Case Study and Courses of Action

Abstract

Naga Nahla and Mehdi Bouchetara

This article analyzes the remuneration strategy of companies in the context of the new management. The case study was conducted in an Algerian drinks company, setting up a remuneration system. We focus on the steps taken in the process of adopting this new remuneration system, the factors driving this change and the objectives of this new strategy. The analysis considers two approaches: The approach of contingency and social regulation. It shows that the change conducted by the company is the result of transformations of the unstable exogenous environment. The latter has encouraged the company to opt for a change to ensure its sustainability and competitiveness. This has impacted its internal environment and induces the change of its salary system through the mobilization of all the actors of the company (administration, workers and union).