Abstract
Pay-for-performance stands for a variety of compensation practices that are designed to reinforce past performance and encourage future performance. The purpose of this article is to review some of the more important issues pertaining to pay-for-performance concepts and research. First, pay-for-performance concepts and practices are introduced in the context of total compensation practices. Second, consideration is given to a longstanding vexing concern about whether rewarding performance with tangible rewards may actually undermine performance. Third, job performance constructs in the context of pay-for-performance are considered. Fourth, executive compensation determination and its implications for pay-for-performance are reviewed. Finally, the importance of recognizing national culture in pay-for-performance research is addressed.
Original language | English (US) |
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Title of host publication | International Encyclopedia of the Social & Behavioral Sciences: Second Edition |
Publisher | Elsevier Inc. |
Pages | 611-617 |
Number of pages | 7 |
ISBN (Electronic) | 9780080970875 |
ISBN (Print) | 9780080970868 |
DOIs | |
State | Published - Mar 26 2015 |
Keywords
- Employee compensation
- Employee pay
- Executive compensation
- Extrinsic motivation
- Group performance
- Individual performance
- Intrinsic motivation
- Organizational performance
- Pay-for-performance
- Performance appraisal
- Reward systems
- Strategic compensation
ASJC Scopus subject areas
- General Social Sciences