Personnel psychology: Performance evaluation and pay for performance
Although there is a voluminous psychological literature on performance evaluation (PE), surprisingly little of this research examines the consequences of linking pay to evaluated performance in work settings. Rather, PE research has been dominated by cognitive processing, measurement, and construct...
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| Published in | Annual review of psychology Vol. 56; no. 1; pp. 571 - 600 |
|---|---|
| Main Authors | , , |
| Format | Journal Article |
| Language | English |
| Published |
Palo Alto, CA
Annual Reviews
2005
Annual Reviews, Inc |
| Subjects | |
| Online Access | Get full text |
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| Abstract | Although there is a voluminous psychological literature on performance evaluation (PE), surprisingly little of this research examines the consequences of linking pay to evaluated performance in work settings. Rather, PE research has been dominated by cognitive processing, measurement, and construct validity issues. At the same time, a large literature on pay-for-performance (PFP) linkages does exist, but most of it has been conducted in disciplines other than psychology. We think this pattern should change. To this end, we briefly trace the origins of the general separation of PE research from PFP research in psychology. From there, we review recent research on the relationship between PE and performance improvement, particularly with respect to multisource or 360-degree evaluation. We then turn to research on various PFP systems, such as merit pay and individual and group incentives. We conclude with suggestions as to how psychological research can make useful contributions to knowledge of PE, PFP, and performance improvement. |
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| AbstractList | Although there is a voluminous psychological literature on performance evaluation (PE), surprisingly little of this research examines the consequences of linking pay to evaluated performance in work settings. Rather, PE research has been dominated by cognitive processing, measurement, and construct validity issues. At the same time, a large literature on pay-for-performance (PFP) linkages does exist, but most of it has been conducted in disciplines other than psychology. We think this pattern should change. To this end, we briefly trace the origins of the general separation of PE research from PFP research in psychology. From there, we review recent research on the relationship between PE and performance improvement, particularly with respect to multisource or 360-degree evaluation. We then turn to research on various PFP systems, such as merit pay and individual and group incentives. We conclude with suggestions as to how psychological research can make useful contributions to knowledge of PE, PFP, and performance improvement. [PUBLICATION ABSTRACT] Key Words appraisal, pay, motivation, incentives, feedback Although there is a voluminous psychological literature on performance evaluation (PE), surprisingly little of this research examines the consequences of linking pay to evaluated performance in work settings. Rather, PE research has been dominated by cognitive processing, measurement, and construct validity issues. At the same time, a large literature on pay-for-performance (PFP) linkages does exist, but most of it has been conducted in disciplines other than psychology. We think this pattern should change. To this end, we briefly trace the origins of the general separation of PE research from PFP research in psychology. From there, we review recent research on the relationship between PE and performance improvement, particularly with respect to multisource or 360-degree evaluation. We then turn to research on various PFP systems, such as merit pay and individual and group incentives. We conclude with suggestions as to how psychological research can make useful contributions to knowledge of PE, PFP, and performance improvement. |
| Author | RYNES, Sara L PARKS, Laura GERHART, Barry |
| Author_xml | – sequence: 1 givenname: Sara L surname: RYNES fullname: RYNES, Sara L organization: Department of Management & Organizations, Tippie College of Business, University of Iowa, Iowa City, Iowa 52242, United States – sequence: 2 givenname: Barry surname: GERHART fullname: GERHART, Barry organization: Graduate School of Business, University of Wisconsin, Madison, Wisconsin 53706, United States – sequence: 3 givenname: Laura surname: PARKS fullname: PARKS, Laura organization: Tippie College of Business, University of Iowa, Iowa City, Iowa 52242, United States |
| BackLink | http://pascal-francis.inist.fr/vibad/index.php?action=getRecordDetail&idt=16564643$$DView record in Pascal Francis https://www.ncbi.nlm.nih.gov/pubmed/15709947$$D View this record in MEDLINE/PubMed |
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| Snippet | Although there is a voluminous psychological literature on performance evaluation (PE), surprisingly little of this research examines the consequences of... |
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| SubjectTerms | Biological and medical sciences Empirical Research Employee Performance Appraisal Feedback Fundamental and applied biological sciences. Psychology Humans Incentives Motivation Occupational psychology Organizational Culture Organizational Policy Orientation. Selection. Evaluation Performance appraisal Performance evaluation Personnel Management - economics Psychology Psychology, Social - methods Psychology. Psychoanalysis. Psychiatry Psychology. Psychophysiology Wages & salaries |
| Title | Personnel psychology: Performance evaluation and pay for performance |
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