Open Access. Powered by Scholars. Published by Universities.®
Management Sciences and Quantitative Methods Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Management Sciences and Quantitative Methods
Pulling In Different Directions? Exploring The Relationship Between Vertical Pay Dispersion And High-Performance Work Systems, Jake G. Messersmith, Kyoung Yong Kim, Pankaj C. Patel
Pulling In Different Directions? Exploring The Relationship Between Vertical Pay Dispersion And High-Performance Work Systems, Jake G. Messersmith, Kyoung Yong Kim, Pankaj C. Patel
Department of Management: Faculty Publications
Vertical pay dispersion (VPD), a hierarchical pay structure used to motivate employees, has traditionally been studied separately from high-performance work systems (HPWSs). As a component of HPWSs, incentive-based compensation schemes focus on employee- or team-level incentives. However, the influence of the simultaneous utilization of VPD and HPWS on performance remains understudied. This study addresses the question of whether these approaches to managing human capital serve as complements or substitutes to one another. VPD and HPWS are argued to substitute for one another with respect to motivation- and skill-enhancing practices. The opposite notion is true in regard to opportunity-enhancing HPWSs, which …
Pay-For-Performance’S Effect On Future Employee Performance: Integrating Psychological And Economic Principles Toward A Contingency Perspective, Anthony J. Nyberg, Jenna R. Pieper, Charlie O. Trevor
Pay-For-Performance’S Effect On Future Employee Performance: Integrating Psychological And Economic Principles Toward A Contingency Perspective, Anthony J. Nyberg, Jenna R. Pieper, Charlie O. Trevor
Department of Management: Faculty Publications
Although pay-for-performance’s potential effect on employee performance is a compelling issue, understanding this dynamic has been constrained by narrow approaches to pay-for-performance conceptualization, measurement, and surrounding conditions. In response, we take a more nuanced perspective by integrating fundamental principles of economics and psychology to identify and incorporate employee characteristics, job characteristics, pay system characteristics, and pay system experience into a contingency model of the pay-for-performance–future performance relationship. We test the role that these four key contextual factors play in pay-for-performance effectiveness using 11,939 employees over a 5-year period. We find that merit and bonus pay, as well as their multiyear …