What Makes Performance-Related Pay Schemes Work? Finnish Evidence
We analyze how features of performance-related pay (PRP) schemes affect their perceived motivational effects using a Finnish survey for upper white-collar employees from 1999. The results show that the following features are important for a successful PRP scheme: (i) the employees have to feel they are able to affect the outcomes; (ii) the organizational level of the performance measurement should be close to the employee: individual and team level performance measurement increase the probability that the scheme is perceived to be motivating; (iii) employees should be familiar with the performance measures; (iv) the level of payments should be high enough and rewards frequent enough. Levels below the median do not generate positive effects; (v) employees should participate in the design of the PRP scheme. Copyright Springer 2006
Volume (Year): 10 (2006)
Issue (Month): 2 (May)
|Contact details of provider:|| Web page: http://www.springer.com|
Postal:Via Cairoli 10 40121 Bologna
Web page: http://www.accademiaaidea.it/en
More information through EDIRC
|Order Information:||Web: http://www.springer.com/new+%26+forthcoming+titles+%28default%29/journal/10997/PS2|
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.:
- French, Stephen & Kubo, Katsuyuki & Marsden, David, 2001.
"Does performance pay de-motivate, and does it matter?,"
LSE Research Online Documents on Economics
3637, London School of Economics and Political Science, LSE Library.
- Stephen French & Katsuyuki Kubo & David Marsden, 2001. "Does Performance Pay De-Motivate, and Does It Matter?," CEP Discussion Papers dp0503, Centre for Economic Performance, LSE.
- Chris Doucouliagos, 1995. "Worker Participation and Productivity in Labor-Managed and Participatory Capitalist Firms: A Meta-Analysis," ILR Review, Cornell University, ILR School, vol. 49(1), pages 58-77, October.
- Wadhwani, Sushil & Wall, Martin, 1990.
"The Effects of Profit-Sharing on Employment, Wages, Stock Returns and Productivity: Evidence from UK Micro-data,"
Royal Economic Society, vol. 100(399), pages 1-17, March.
- Wadhwani, S. & Wall, M., 1988. "The Effects Of Profit-Sharing On Employment, Wages, Stock Returns And Productivity: Evidence From Uk Micro-Data," Papers 311, London School of Economics - Centre for Labour Economics.
- Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
- Kandel, Eugene & Lazear, Edward P, 1992. "Peer Pressure and Partnerships," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 801-817, August.
- Kruse, Douglas L, 1992. "Profit Sharing and Productivity: Microeconomic Evidence from the United States," Economic Journal, Royal Economic Society, vol. 102(410), pages 24-36, January.
- David Marsden, 2004. "The Role of Performance-Related Pay in Renegotiating the â€œEffort Bargainâ€ : The Case of the British Public Service," ILR Review, Cornell University, ILR School, vol. 57(3), pages 350-370, April.
- Murphy, Kevin J., 1999. "Executive compensation," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 38, pages 2485-2563 Elsevier. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:kap:jmgtgv:v:10:y:2006:i:2:p:149-177. 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: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.