TY - JOUR AB - This study uses cross‐section and panel data from the 1998 Workplace Employee Relations Survey to explore contextual influences on the relationship between performance‐related pay (PRP) and organizational performance. While it finds strong evidence that the use of PRP can enhance performance outcomes, it also determines that this relationship is qualified by the structure of workplace monitoring environments. In addition, it presents evidence that managers learn about optimum combinations of pay system and monitoring environment through a process of experimentation. Finally, although there exists a robust positive association in these data between use of PRP and pay inequality, it appears that these higher levels of inequality carry no performance penalty. VL - 24 IS - 4 SN - 0143-7720 DO - 10.1108/01437720310485933 UR - https://doi.org/10.1108/01437720310485933 AU - Belfield Richard AU - Marsden David PY - 2003 Y1 - 2003/01/01 TI - Performance pay, monitoring environments, and establishment performance T2 - International Journal of Manpower PB - MCB UP Ltd SP - 452 EP - 471 Y2 - 2024/04/20 ER -