Pay, Compensation, and Performance, Psychology of

Joseph J Martocchio

Research output: Chapter in Book/Report/Conference proceedingChapter


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 languageEnglish (US)
Title of host publicationInternational Encyclopedia of the Social & Behavioral Sciences: Second Edition
PublisherElsevier Inc.
Number of pages7
ISBN (Electronic)9780080970875
ISBN (Print)9780080970868
StatePublished - Mar 26 2015


  • 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

  • Social Sciences(all)


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