Abstract
Analyses the introduction and first three years of the operation of a new reward system in a financial services organisation. The purpose of the study was to develop an explanatory theory associated with reward system change effectiveness. Following a description of the organisation and its operational context, analyses the new reward system, together with an examination of the specific objectives the organisation's managers hoped it would achieve. Provides an explanation of the methods employed to collect and analyse the data. The main part of the paper comprises an analysis of these data, which provides evidence that the system was not meeting its objectives. Subsequently uses the literature on reward theory and organisational behaviour to help explain the reasons for such apparent ineffectiveness. Concludes by suggesting a tentative theory of reward system change effectiveness.