Organizational context variables to be considered in the design of rewards system oriented to product innovation

This paper aims to contribute to the existing body of knowledge regarding the organizational context variables to be considered in designing a rewards system geared towards fostering innovation in products at organizations. Based on the existing literature, a preliminary reference chart is created using context variables and their implications for the design at issue, specifically: organizational strategy, type of innovation to be encouraged, beliefs and cultural traits of the company, and previously established systems of goals and rewards. Field research is then done using qualitative interviews with five specialists, consultants and scholars in strategic human resource management and in rewards systems, as well as by using case studies of four large-scale industrial companies known for being innovative. The subject researched showed that little knowledge has been accumulated by specialists as well as by designers of rewards systems at organizations operating in Brazil concerning the issue studied. Nevertheless the four main context variables listed previously was maintained and the field research permitted a set of analysis that changed relevant aspects of the details of this chart. It is believed that this paper can contribute to close the gap that exists in literature on the design of rewards for innovation.