The antecedents of satisfaction with pay in teams: do performance-based compensation and autonomy keep team-members satisfied?
This paper aims to investigate the effects performance-based compensation and autonomy on satisfaction with pay in the context of team working. I develop a complex perspective that considers the influence of different monetary and non-monetary rewards on satisfaction with pay. Drawing from the agency theory, equity theory and theory of cooperation I predict that both piece rates and team-based rewards are associated with higher pay satisfaction. Moreover, I claim that both individual and team-based autonomy contribute to increased satisfaction with pay. Using a cross-sectional dataset of randomly selected European employees who are asked about specific working and living conditions, results confirm that both productivity-based rewards and autonomy are important for employee satisfaction. Managers should know when to introduce rewards based only on individual merits and when to give to use autonomy as a buffer to compensate for the potential lack of fairness in the payment system.
Volume (Year): 3(1) (2012)
Issue (Month): (June)
|Contact details of provider:|| Web page: http://cse.uaic.ro|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Simon Burgess & Carol Propper & Marisa Ratto & StephanievonHinke KesslerScholder & Emma Tominey, 2010.
"Smarter Task Assignment or Greater Effort: The Impact of Incentives on Team Performance,"
Royal Economic Society, vol. 120(547), pages 968-989, 09.
- Simon Burgess & Carol Propper & Marisa Ratto & Stephanie von Hinke Kessler Scholder & Emma Tominey, 2009. "Smarter Task Assignment or Greater Effort: the impact of incentives on team performance," The Centre for Market and Public Organisation 09/215, Department of Economics, University of Bristol, UK.
- J Taylor & S Bradley & A N Nguyen, 2003. "Job autonomy and job satisfaction: new evidence," Working Papers 541528, Lancaster University Management School, Economics Department.
- Kandel, E. & Lazear, E.P., 1990.
"Peer Pressure and Partnerships,"
90-07, Rochester, Business - Managerial Economics Research Center.
- Thomas Lemieux & W. Bentley Macleod & Daniel Parent, 2006.
"Performance Pay And Wage Inequality,"
Departmental Working Papers
2006-08, McGill University, Department of Economics.
- Lemieux, Thomas & MacLeod, W. Bentley & Parent, Daniel, 2007. "Performance Pay and Wage Inequality," IZA Discussion Papers 2850, Institute for the Study of Labor (IZA).
- Thomas Lemieux & W. Bentley MacLeod & Daniel Parent, 2007. "Performance Pay and Wage Inequality," NBER Working Papers 13128, National Bureau of Economic Research, Inc.
- Edward P. Lazear, 2000.
"Performance Pay and Productivity,"
American Economic Review,
American Economic Association, vol. 90(5), pages 1346-1361, December.
- Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2009.
"Social Incentives in the Workplace,"
IZA Discussion Papers
4190, Institute for the Study of Labor (IZA).
- Raith, Michael, 2004.
"Specific Knowledge and Performance Measurement,"
CEPR Discussion Papers
4262, C.E.P.R. Discussion Papers.
- Armin Falk & Andrea Ichino, 2004.
"Clean Evidence on Peer Effects,"
666156000000000439, UCLA Department of Economics.
- Erling Barth & Bernt Bratsberg & Torbjørn Hægeland & Oddbjørn Raaum, 2008.
"Who pays for performance?,"
International Journal of Manpower,
Emerald Group Publishing, vol. 29(1), pages 8-29, May.
- Michael K Hui & Kevin Au & Henry Fock, 2004. "Empowerment effects across cultures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(1), pages 46-60, January.
- Canice Prendergast, 2002. "The Tenuous Trade-off between Risk and Incentives," Journal of Political Economy, University of Chicago Press, vol. 110(5), pages 1071-1102, October.
- Barton H. Hamilton & Jack A. Nickerson & Hideo Owan, 2003. "Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 465-497, June.
When requesting a correction, please mention this item's handle: RePEc:jes:journl:y:2012:v:3:p:145-168. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alupului Ciprian)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.