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Organizational Behavior and Theory

Louisiana Tech University

Compensation

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Consequences Of Contingent Compensation, James Herschel Turner Jul 1999

Consequences Of Contingent Compensation, James Herschel Turner

Doctoral Dissertations

The principal objective of this study is the explication of the impact of incentives on measures of performance. The effects of contingent compensation (commissions and bonuses) on role stress, job attitudes, and performance outcomes were studied in a multi-industry sample of 255 employees.

It was hypothesized that as compensation contingency increases, role conflict and financial anxiety also increase and the increase in stress would be negatively related to in-role performance, organizational commitment, and job satisfaction. Finally, it was hypothesized that as organizational commitment and job satisfaction are reduced, intent-to-leave will be increased and extra-role performance will be reduced. The sum …