This study draws on the idea of isomorphism and decoupling to explain the rapid diffusion of
performance compensation system among Korean firms in its compromised rather than pure
form. Empirical analysis of data on Korean firms confirms that three mechanisms of
isomorphism?coercive, normative, and mimetic?operate in the process toward isomorphism
among Korean firms in their adoption of performance compensation system, but only its
compromised form between seniority and performance pay. While labor union as a potential
source of resistance promotes decupling, the role of professionals such as consultants or HRM
experts suppresses the possibility of decoupling.