Evaluating Pay-for-Performance Systems: Critical Issues for Implementation

Compensation and Benefits Review

Volumn 42, Issue 4, 2010, Pages 231-238

  Glassman, Myron ^a   Glassman, Aaron ^a   Champagne, Paul J ^a   Zugelder, Michael T ^a  

^a NONE   (United States)

Author keywords

compensation; employee motivation; merit pay; pay for performance system

Indexed keywords

EID: 84902171757     PISSN: 08863687     EISSN: 15523837     Source Type: Journal    
DOI: 10.1177/0886368710374391     Document Type: Article

References (11)

1. PFP and merit pay are defined in many ways ranging from one-time bonuses to base-pay increases to profit sharing. These distinctions will not be addressed, although the nature of one’s current PFP system will affect the interpretation of our analysis.
2. Pfeffer, J., & Sutton, R. (2006). Evidence based management. Harvard Business Review, January, 63-74.
3. Locke, E., Feren, D., McCaleb, V., Shaw, K., & Denny A. (1980). The relative effectiveness of four ways of motivating employee performance. In K. Duncan, M. Gruenberg, & D. Wallis (Eds.), Changes in working life (pp. 363-388). New York, NY: Wiley.
4. Lazaer, E. (2000) Performance pay and productivity. American Economic Review, 90, 1346-1661.
5. Kauhanen, A., & Piekkola, H. (2006). What makes performance-related pay schemes work? Finnish evidence. Journal of Management Governance, 10, 149-177.
6. Ramaswami, S., & Singh, J. (2003). Antecedents and consequences of merit pay fairness for industrial salespeople. Journal of Marketing, 67(4), 46-66.
7. Risher, H. (2002). Pay-for-performance: The keys to making it work. Public Personnel Management, 31, 317-332.
8. Terpstra, D., & Honoree, A. (2005). Employees’ responses to merit pay inequity. Compensation & Benefits Review, 37, 51-58.
9. Hansen, F. (2009). Merit pay produces pay discrimination. Retrieved from http://www.workforce.com/section/02/feature/25/91/53/259165_printer.html
10. This is not to suggest that PFP systems are a fad because commission, piece-work, and group bonus systems have long been in place.
11. Lozeau, D., Langley, A., & Denis, J. (2002) The corruption of managerial techniques by organizations. Human Relations, 55, 537-564.