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Linking Pay-for-Performance System with Performance Improvement: the role of Fairness, Organizational Resources, and Leader/Managerial Engagement

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  • Dong Chul Shim
  • Yong Soo Kwon
  • Hyun Hee Park
  • Sung Won Hwang

Abstract

This study explores the antecedents of successful implementation of the pay-for-performance system by conducting surveys in 11 different ministries and administrations of the Korean government. In particular, this study examined the roles of fairness of performance evaluation, organizational resources, and leader/managerial engagement. The results suggest that fairness of performance evaluation and leader/managerial engagement can be important factors in directly enhancing employees’ perceived performance. Organizational resources were also found to indirectly improve employees’ perceived performance by enhancing the fairness of performance evaluations. The results are expected to help public managers understand how performance management systems can be developed in government organizations.

Suggested Citation

  • Dong Chul Shim & Yong Soo Kwon & Hyun Hee Park & Sung Won Hwang, 2011. "Linking Pay-for-Performance System with Performance Improvement: the role of Fairness, Organizational Resources, and Leader/Managerial Engagement," International Review of Public Administration, Taylor & Francis Journals, vol. 16(2), pages 49-69, August.
    • Handle: RePEc:taf:rrpaxx:v:16:y:2011:i:2:p:49-69
    DOI: 10.1080/12264431.2011.10805196
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