Pressures on Australian industry for improved international competitiveness have been met with a shift towards decentralized wage determination based on productivity at the enterprise level. The principle of linking wage increases to productivity has received widespread support from government, employer and. union organizations. However, the identification of measures and methods suitable for enterprise wage determination is not well developed. In this paper, an eclectic approach to productivity measzcrement using performance and behavioural indicators is used to develop a model for enterprise wage determination. This model is tested using data collected on key performance and behavioural indicators from one large firm in Tasmania, Australia.
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