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46 organizations achieve alternative pay program alternative reward programs alternative reward systems American Compensation Association bonuses bottlenecks business environment business incentive plans business plan business strategy business units compensation practice competitive advantage customer responsiveness customer service decentralization definite terms develop employee involvement factors field service employees financial services institutions firms reported First-generation plans focused formula gain-sharing plans group incentives Honeywell illustrated in Exhibit Improshare indirect financial costs knee jerks Lump-sum incentives major market share operations organiza Organizational Design Changes organizations studied pay at risk pay for knowledge percent problems profit Profit sharing profit-sharing psychic costs Q Measures reward strategies Rewards and Renewal salary second-generation models self-managed teams separate successful skill blocks skill-based pay system skill-based systems specific reward design stable start-up strategy and culture study reported time-based pay tions traditional gain sharing transition to alternative trying skill-based pay U.S. Chamber variable pay Wallace