Title

Performance-Based Pay in the Workplace: Magic Potion or Malevolent Poison?

Document Type

Article

Publication Date

2002

Publication Source

Behavior Analyst Today

Volume

3

Issue

3

Inclusive pages

311-322

DOI

http://dx.doi.org/10.1037/h0099987

ISBN/ISSN

15394352

Abstract

Performance-based pay systems have been widely used in organizations. Despite their popularity, they have been criticized on a number of grounds, such as their lack of effectiveness. There is also surprisingly little research on what effects such systems may have on employee perceptions. The present paper is divided into two sections. First, we review several of the major criticisms of performance-based pay systems and provide responses in their defense. Second, based on research literature, we offer a discussion of numerous perceptions and attitudes that may mediate the relationship between performance-based pay and employee performance.

Keywords

performance-based pay, workplace, organizations, criticisms

Disciplines

Industrial and Organizational Psychology | Organizational Behavior and Theory

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