This study examines compensation strategies formulated and implemented by high technology
firms and their relative effectiveness. Based on a sample of 173 firms, empirical results indicate
that the following pay strategies are most appropriate for high technology organizations: A greater
emphasis on the individual rather than the job as the unit of analysis, sharing of risks between
employees and the firm, an external market orientation, dispersed decision making authority for
pay allocation purposes, reliance on aggregate incentives and a longer time orientation
