Throughout the last decade, there has been a great deal of research focused on strategic human resource management, but much of the literature has neglected strategic compensation strategies such as goal setting and gainsharing. This article outlines the variables, functions and mechanisms of goal-setting and gainsharing strategies and summarizes the empirical research. The purpose of the article is to provide a practical framework for integrating goal-setting theory and gainsharing strategies so that they can be used to achieve desired organizational outcomes.
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