Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects

We address two broad questions: how much pay for individual performance (PFIP) is there and what are the positive and negative effects of PFIP? We consider specific claims, including that PFIP does not motivate (or even de-motivates), that it is ineffective in teams, and that it is ineffective in so...

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Bibliographic Details
Published inHuman resource management review Vol. 24; no. 1; pp. 41 - 52
Main Authors Gerhart, Barry, Fang, Meiyu
Format Journal Article
LanguageEnglish
Published Greenwich Elsevier Inc 01.03.2014
Elsevier Science Ltd
Subjects
Compensation
Culture
Incentives
Motivation
Pay for performance
Sorting
Studies
Pay for performance
Incentives
Motivation
Performance
Compensation
Sorting
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Summary:We address two broad questions: how much pay for individual performance (PFIP) is there and what are the positive and negative effects of PFIP? We consider specific claims, including that PFIP does not motivate (or even de-motivates), that it is ineffective in teams, and that it is ineffective in some national cultures. We demonstrate how incorporating sorting effects of PFIP into conceptual treatments of PFIP can change how one views the likely effectiveness of PFIP across contexts.
ISSN:1053-4822
1873-7889
DOI:10.1016/j.hrmr.2013.08.010