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Performance Measurement and Incentive Intensity

Author

Listed:
  • Bayo-Moriones, Alberto

    (University of Navarra)

  • Galdon-Sanchez, Jose Enrique

    (Universidad Pública de Navarra)

  • Martinez-de-Morentin, Sara

    (Universidad Pública de Navarra)

Abstract

This study addresses the factors that determine the intensity of pay for performance schemes. The results indicate that the use of individual and group incentives boost intensity, whereas plant or firm pay for performance do not seem to affect the variable of interest. In addition, the adoption of measures of results, such as productivity or quality, has a significant positive effect on intensity. On the contrary, measures of human resource management outcomes, subjective measures and financial measures are not significant or have a negative effect on the intensity of pay for performance.

Suggested Citation

  • Bayo-Moriones, Alberto & Galdon-Sanchez, Jose Enrique & Martinez-de-Morentin, Sara, 2015. "Performance Measurement and Incentive Intensity," IZA Discussion Papers 9243, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9243
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    More about this item

    Keywords

    pay for performance;

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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