Pay for performance does not always increase performance

Dorn, Michael Hans; Messner, Claude; Ouertani, Jasmin (2015). Pay for performance does not always increase performance. Zeitschrift für Arbeits- und Organisationspsychologie, 59(2), pp. 85-94. Hogrefe 10.1026/0932-4089/a000180

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Pay for performance can have a positive or a negative influence on actual performance. The aim of this study was to give an explanation for this contradiction.We demonstrated that the variability of the payment can act as a stressor. According to the transactional model of stress, the influence on performance depends on the subjective interpretation of the variability as challenge or threat. Therefore we manipulated the degree of variability. The data showed decreasing performance for participants who preferred less-variable payments. They performed better under a less-variable rather than more-variable payment. The participants who preferred more-variable payment schemes showed the opposite pattern. These participants showed a higher performance under a more-variable rather than less-variable payment scheme.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Innovation Management > Consumer Behavior

UniBE Contributor:

Dorn, Michael Hans and Messner, Claude Mathias

Subjects:

600 Technology > 650 Management & public relations

ISSN:

0932-4089

Publisher:

Hogrefe

Language:

English

Submitter:

Michael Hans Dorn

Date Deposited:

21 Apr 2015 16:37

Last Modified:

19 Feb 2019 12:02

Publisher DOI:

10.1026/0932-4089/a000180

BORIS DOI:

10.7892/boris.66879

URI:

https://boris.unibe.ch/id/eprint/66879

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