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- Title
When pay for performance works too well: The negative impact of pay dispersion.
- Authors
Gardner, Tim
- Abstract
The article presents information on the negative impact of the pay for performance method of rewarding employees. Research suggesting that compensation systems designed to encouraged and reward desired performance may negatively affect organizational and individual performance. The researcher's use of compensation and performance data from Major League Baseball is analyzed, as well as the findings of the research. Suggestions of possible explanations for the findings are also discussed, including the effect that different rates of pay may have on employee interaction.
- Subjects
PAY for performance; EMPLOYEE motivation; COMPENSATION management; EMPLOYEE reviews; BLOOM, Matt; LABOR incentives; JOB performance; PERFORMANCE awards; EMPLOYEE morale; WAGES
- Publication
Academy of Management Executive, 1999, Vol 13, Issue 4, p101
- ISSN
1079-5545
- Publication type
Article
- DOI
10.5465/AME.1999.2570559