Pay For Performance Research Articles

Experimental examination of the incentive and sorting effects of pay-for-performance on creative performance.

There is long-standing debate over whether pay-for-performance (PFP) enhances or undermines creative performance. Traditional motivation and revised creativity theories suggest that PFP and intrinsic task interest combine additively to enhance creative performance, whereas cognitive evaluation theory and self-determination theory posit that PFP undermines task interest and thus intrinsic motivation and creative performance. To help resolve these conflicting predictions and provide a more comprehensive understanding of how and when PFP influences creative performance, this study incorporates both the incentive and sorting mechanisms of PFP, varying strengths of PFP, and task autonomy as a key moderator. A novel laboratory experiment was designed to capture key elements of workplace contexts, including in the design of the creative tasks, PFP strengths based on benchmarking of U.S. companies' practices, and allowing subjects to sort into different pay conditions, consistent with the opportunity for mobility in the labor market. The results showed that, through both incentive and sorting mechanisms, high PFP intensity enhanced creative performance more so than low PFP intensity, and both were superior to fixed pay. Importantly, task autonomy positively moderated the PFP-creative performance relationship, such that creative performance under PFP increased much more under higher task autonomy. Finally, the difference in creative performance under PFP versus fixed pay was greater when subjects were allowed to sort into their preferred pay conditions than when they worked only under randomly assigned pay conditions. Theoretical and practical implications and future research directions are discussed. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

Feasibility of Pay for Performance and Transparency Interventions on the Selection and Quality of Observational Management for Patients with Low-Risk Prostate Cancer in the Community Practice.

Feasibility of Pay for Performance and Transparency Interventions on the Selection and Quality of Observational Management for Patients with Low-Risk Prostate Cancer in the Community Practice.

Pay for Performance in the Pool: Sink or Swim?

In the shadow of Title IX's 50th anniversary in 2022, it is fitting to investigate whether female elite swimmers are rewarded the same way male swimmers are. This article thus contributes to the growing literature on gender differences in performance and pay in sport. Our article frames this question in a unique way, as we compare the extent of economic exploitation of women and men in elite swimming. Are female swimmers “underpaid” relative to their marginal revenue products at the same level as their male counterparts?

Performance Pay Increases Dog Vaccinations to Reduce Human Rabies

ABSTRACT Rural development projects often depend on local community members to coordinate community participation. Using a randomized controlled trial, this paper examines how pay-for-performance for community coordinators affects participation in dog vaccination events to prevent human rabies in Tanzania. Three treatments were implemented: fixed payment only, pay-for-performance only, or a mix of fixed payment and pay-for-performance. Using dog vaccination histories, the experiment equalizes the total expected payment across treatments, isolating the effect of payment type. Mixed payment increases dog vaccinations by 16 percent compared to fixed payment. Each 10 percent increase in per-dog payment raises vaccinations by 0.4 percent. Changing the fixed payment rate has a negligible effect. Thus, pay-for-performance induces higher effort than the fixed component. The findings suggest pay-for-performance can improve the effectiveness of rural development projects such as mass immunization events.

Firm Performance Pay as Insurance against Promotion Risk

ABSTRACTThe prevalence of pay based on risky firm outcomes for nonexecutive workers presents a puzzling departure from conventional contract theory, which predicts insurance provision by the firm. When workers at the same firm compete against each other for promotions, the optimal contract features pay based on firm outcomes as insurance against promotion risk. The model's predictions are consistent with many observed phenomena, such as performance‐based vesting and overvaluation of equity pay by nonexecutive workers. It also generates novel predictions linking a firm's hierarchy to its workers' pay structure.

Incentive Effects of Perceived Pay for Performance: Controlling and Informational Effects of Pay

Incentive Effects of Perceived Pay for Performance: Controlling and Informational Effects of Pay

Lost in the Maze: An Action Research About Performance Pay Complexity

Lost in the Maze: An Action Research About Performance Pay Complexity

An Incentive Program with Almost no Incentive: Overlooked Benefits of Pay for Performance*

An Incentive Program with Almost no Incentive: Overlooked Benefits of Pay for Performance*

Is pay for performance promoting inverse inequality in Irish general practice?

In 2020, the Chronic Disease Management (CDM) programme was introduced in Ireland. This programme resources GPs to review public (GMS) patients, diagnosed with eight named chronic diseases, twice yearly according to a structured protocol. This pay for performance initiative has been widely adopted by GPs. However, it is hypothesised that private patients (PPs) receive a poorer standard of care, as they may be reluctant to attend due to the cost involved. To assess whether the management of eight chronic diseases named in the CDM programme is to the same standard among both PPs and GMS patients. A retrospective audit of GP practices in the Midwest of Ireland. Data relating to 25 GMS patients and 25 PPs, matched by age, gender, and clinical condition, is collected from each practice. Patients have at least 1 of the eight named chronic diseases. Parameters include vaccination status (influenza, pneumococcal, COVID); body mass index; blood pressure; smoking status; renal function; HbA1c; lipid profile; brain natriuretic peptide (BNP) in patients with heart failure; and lung function tests in patients with COPD or asthma. COVID vaccination status acts as a control because it is freely available for both PPs and GMS patients. Preliminary results from 2 GP practices show large consistent disparities in management between PPs and GMS patients in most parameters. Limiting Pay for Performance to the care of GMS patients only, based on age or income, promotes inverse inequality. We argue that CDM care should be offered to all patients.

Evaluasi Struktur dan Skala Upah (SSU) UKM Katering XYZ dengan Metode Skala Ganda Berurutan dan Tumpang Tindih

Micro, Small, and Medium Enterprises (MSMEs) in Indonesia continue to encounter various challenges such as limited capital, marketing barriers, and management issues, particularly in human resource management. Compensation serves as a crucial factor influencing employee performance and motivation. It is mandatory for every business in Indonesia to formulate a Pay Structure. This research aims to evaluate the Pay Structure of XYZ Catering MSME in Denpasar, Bali based on the 3P principle (Pay for Position, Person, and Performance). The data utilized comprises primary data obtained through in-depth interviews with business managers, supplemented by secondary data sourced from business websites and relevant literature. Job classification is conducted through job value analysis employing pairwise comparison based on 10 compensation factors assessed by business managers. Salary mapping is executed using a simple ranking method with adhered and overlapping double scales. Salary mapping with the adhered method yields a total salary increase of Rp10,218,890 from the initial total salary, whereas overlapping method result in a total salary increase of Rp5,789,746. Based on the analysis, the rectification of pay structure utilizing the overlapping simple ranking method is chosen due to its greater flexibility and offers pay structure improvement that aligns with the company's capabilities.

Pay-for-performance and low back pain with interaction of overwork: findings from the cross-sectional Korean working conditions survey.

Pay-for-performance (PFP) is a type of incentive system where employees receive monetary rewards for meeting predefined standards. While previous research has investigated the relationship between PFP and health outcomes, the focus has primarily been on mental health. Few studies have explored the impact of PFP on specific physical symptoms like pain. Data from the Korean Working Conditions Survey (KWCS) was analyzed, encompassing 20,815 subjects with information on PFP and low back pain (LBP). The associations between types of base pay (BP) and PFP with LBP were examined using multivariate logistic regression models, taking into account a directed acyclic graph (DAG). The interaction of overtime work was further explored using stratified logistic regression models and the relative excess risk for interaction. The odds ratio (OR) for individuals receiving both BP and PFP was statistically significant at 1.19 (95% CI 1.04-1.35) compared to those with BP only. However, when the DAG approach was applied and necessary correction variables were adjusted, the statistical significance indicating a relationship between PFP and LBP vanished. In scenarios without PFP and with overtime work, the OR related to LBP was significant at 1.54 (95% CI 1.35-1.75). With the presence of PFP, the OR increased to 2.02 (95% CI 1.66-2.45). Pay-for-performance may influence not just psychological symptoms but also LBP in workers, particularly in conjunction with overtime work. The impact of management practices related to overtime work on health outcomes warrants further emphasis in research.

Strategic Alignment: Linking Employee Compensation with Organizational Sustainability

Expanding upon existing research on compensation, this study delves into the intricate connections among employee competencies, corporate cultures, and compensation strategies. These strategies, often discussed in literature pertaining to the implementation of pay-for-performance (PFP) systems or the challenges leading to their failure, have been underrepresented in research directed towards HR education practitioners. This study fills this gap by shedding light on which organizational factors are crucial in determining the suitability of PFP or alternative compensation programs. Drawing upon data gathered from 385 employees in the American manufacturing sector, the findings reveal statistically significant relationships between employee competencies and organizational cultures. These findings align with previous research, underscoring the linkages between compensation schemes, various organizational competencies, and diverse organizational cultures, thereby enriching the existing literature on the subject.

School-Based Management, School Structure, Pay–Pay-for-Performance: A Causal Model on Effective Development in Public Schools in Region XI

This study aimed to determine the best-fit model for effective performance management and development in public schools. Using descriptive-correlational and Structural Equation Modeling, the writer selected 400 Secondary Teacher I to Teacher III respondents from the eleven divisions of Davao Region, Philippines, through stratified sampling. This study adapted four downloaded questionnaires from internet sources. The questionnaires were modified and included only the items relevant to the study. The draft was submitted to the writer's adviser for comments and suggestions. Results revealed very high levels of school-based management, and school structure, while pay-for-performance showed high results. On the other hand, the endogenous performance management and development of teachers obtained a very high level of descriptive equivalent. Significant correlations existed between the three exogenous variables: school-based management, school structure, and pay-for-performance, and the endogenous variable, effective performance management and development. Findings also revealed that Model 3 portrayed the best-fit model exhibiting direct causal relationships of school-based management, school structure, and pay-for-performance on performance management and development. Further structure modifications showed that Performance Management and Development were defined by its retained indicators: Performance Review Meeting, Motivation, and Career Development. Moreover, School-based Management was described by its domains: Leadership and Governance, Curriculum and Instruction, and Resources Management. Also, School Structure was ascertained by its retained indicators: Physical Structure of the Building, and Organizational Structure of the Building. Finally, Pay-for-Performance was determined by its domains: Performance Pay, and Development and Evaluation. The findings of this study may shed light and ameliorate cognizance concerning how institutions may boost organizational efficiency.

The moderating effects of collective pay for performance on the total quality management-labour productivity relationship

Using a sample of 450 Korean firms, this study investigates the moderating effects of collective pay-for-performance (PFP) on the relationship between total quality management (TQM) and firm performance. Specifically, we focus on the differential effects of three forms of collective PFP (team incentives, profit sharing, and stock ownership) on the TQM-labour productivity relationship, based on the premise that each form of collective PFP has different sets of characteristics. Our results provide evidence that team incentives have a negative moderating effect, while profit sharing and stock ownership have positive moderating effects on TQM and firm performance. Additionally, we found that the moderating effect of profit sharing is stronger than that of stock ownership when considering simultaneously. Our findings suggest that organizations should carefully consider the different forms and characteristics of collective PFP when designing a compensation system and allocating rewards to enhance the positive impact of collective PFP on the TQM-firm performance relationship.

Working from Home and Performance Pay: Individual or Collective Payment Schemes?

Working from Home and Performance Pay: Individual or Collective Payment Schemes?

Making the Right Call: The Heterogeneous Effects of Individual Performance Pay on Productivity

Making the Right Call: The Heterogeneous Effects of Individual Performance Pay on Productivity

Research and Application of Performance Pay Platform Construction for College Teaching Staff Counting and Multi-scale Feature Fusion Networks

Abstract In this paper, a multi-scale feature fusion network is constructed by combining U-Net and Densebox algorithms, and feature extraction is performed by the deep residual network (ResNet). Taking colleges and universities as an example, a teacher reputation incentive model combining a multi-scale feature fusion network is established based on marginal productivity. The multi-scale feature fusion network is proposed to be used to realize the employee performance measurement level and personal appraisal system in the salary performance appraisal platform for teachers in colleges and universities. The appraisal test analysis of the teacher team’s performance and salary was carried out with the teacher team of School G as an example. The results show that the starting salary points of B1, C1, and D1 of the teacher team of school G are 2250, 1650, and 1260, respectively, in which the median difference in salary value between the highest grade B1 (9618) and the lowest grade I2 (784) is 8834 yuan. The performance pay management platform constructed in this paper effectively provides incentives and promotes the high-quality development of the university teaching team through strict assessment and fair distribution.

The impacts of role commitment and pay-for-performance on proactive career behavior: an interactionist perspective

PurposeProactive career behavior (PCB) is an effective form of career self-management that has positive impacts on individual career development and career success, and therefore, the purpose of this paper is to explore the driving factors of PCB.Design/methodology/approachDrawing on the interactionist perspective and situational strength theory, this study examined the independent and joint effects of role commitment and pay-for-performance (PFP) on employees' PCB based on data collected from 298 Chinese private enterprise employees at two time points.FindingsThe authors found that occupational role commitment (ORC), parental role commitment (PRC) and PFP were positively related to PCB. Furthermore, PFP moderated the relationship between ORC/PRC and PCB, such that the two relationships were stronger when PFP was low.Originality/valueDrawing on the interactionist perspective, the authors contribute to the literature on PCB by revealing novel antecedents of PCB: ORC, PRC and PFP. The authors also contribute to the situational strength theory by examining how role commitment and PFP may interact to impact employees' PCB. Finally, the authors are among the first to consider the effects of role commitment on individual career behaviors, thus extending the nomological network of role commitment.

Performance Pay in Insurance Markets: Evidence from Medicare

Abstract Public procurement bodies increasingly resort to pay-for-performance contracts to promote efficient spending. We show that firm responses to pay-for-performance can widen the inequality in accessing social services. Focusing on the quality bonus payment initiative in Medicare Advantage, we find that higher quality-rated insurers responded to bonus payments by selecting healthier enrollees with premium differences across counties. Selection is profitable because the quality rating fails to adjust for differences in enrollee health. Selection inflated the bonus payments and shifted the supply of high-rated insurance to the healthiest counties, reducing access to lower-priced, higher-rated insurance in the riskiest counties.

Pay for performance at a crossroads: lessons from taking a global perspective

PurposeThe use of pay for performance (P4P) as an instrument to incentivise quality improvements in health care is at a crossroads in high-income countries but has remained a commonly used tool in low- and middle-income countries. The authors aimed to take stock of the evidence on effectiveness and design from across income settings to reveal insights for the future design of performance payment across income contexts.Design/methodology/approachThe authors identified Cochrane literature reviews of the use of P4P in health care in any income setting, tracked the development in the quantity and quality of evidence over time, and compared the incentive design features used across high-income countries compared to low- and middle-income countries.FindingsThe quantity and quality of the evidence base have grown over time but can still be improved. Scheme design varies across income settings, and although some design choices may reflect differences in context, the authors find that incentive designers in both income settings can learn from practices used in the other setting.Originality/valueThe research and literature on P4P in high-, low- and middle-income countries largely operate in silos. By taking stock of the evidence on P4P from across income settings, the authors are able to draw out key insights between these settings, which remain underexplored in the literature.