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Full-Text Articles in Social and Behavioral Sciences
Pay For Performance: What Type Of Pay Scheme Is Best For Achieving Business Results?, Fermin Augusto Diez
Pay For Performance: What Type Of Pay Scheme Is Best For Achieving Business Results?, Fermin Augusto Diez
Dissertations and Theses Collection
Much has been written, for and against, about compensation as a driver of performance. Two main theoretical constructs deal with this subject: extrinsic theory, including agency theory, whereby money is a main motivator to performance, and intrinsic theory which proposes that money does not motivate, and in fact may hinder, performance. However, corporations spend considerable effort in designing compensation packages with the objective of linking remuneration to performance. Practitioners have developed a variety of mechanisms to deliver pay packages, but heretofore there has been no attempt to validate which, if any, of these various approaches is better able to drive …