S. Amir Kohan

Define Contribution-Oriented Company

Contribution-Oriented These companies are more performance driven. They put
greater emphasis on job performance and the contributions of individual employees.
They focus on results but not so much on how the results are achieved. A company that
instructs its sales force to do whatever it takes to get sales orders has a culture that places
a high value on outcomes. Their compensation systems emphasize performance-based
pay, incentives, and shared responsibility for benefits.

Although few organizations have a compensation system based solely on a performance
approach, the trend is moving further from an entitlement approach and closer to
a performance approach. Most organizations have compensation systems with elements
associated with both approaches.

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