Organizational rewards: considering employee need in allocation

Jillian Webb Day (HR-Organization Development, University of Texas MD Anderson Cancer Center, Houston, Texas, USA)
Courtney L. Holladay (HR-Organization Development, University of Texas MD Anderson Cancer Center, Houston, Texas, USA)
Stefanie K. Johnson (Business School, University of Colorado Denver, Denver, Colorado, USA)
Laura G. Barron (Force Management Policy Division, US Air Force, Randolph AFB, Texas, USA)

Personnel Review

ISSN: 0048-3486

Publication date: 28 January 2014

Abstract

Purpose

The purpose of this study is to investigate how employee need relates to rewards and employee perceptions of fairness within an organization in the USA using a pay-for-performance system.

Design/methodology/approach

To evaluate the presence of a relationship between employee need and reward allocation in a pay-for-performance system, a questionnaire was administered to a sample of 292 employees from two departments at an academic medical center.

Findings

The findings highlight the positive relationship between employee need and reward allocation that remains when controlling for employee performance evaluation ratings. Findings further show that employee communication with the manager about need explains this relationship.

Research limitations/implications

The findings make two important contributions to research on reward allocation and performance management. First, the results show employee need is related to the allocation of rewards in organizational settings outside of collectivistic cultures or developing countries. Second, by demonstrating the role of employee communication with managers about need within the relationship between employee need and reward allocation, the paper provides a more detailed understanding of additional factors related to compensation decisions in a pay-for-performance system.

Originality/value

Little research has explored the relationship between employee need and reward decisions at an individual level in organizational settings within individualistic cultures. The findings from this study address this gap by establishing the presence of this relationship in a pay-for-performance reward-based organization with service-based values. This finding is timely due to the current economic downturn experienced by organizations, and thereby the level of employee need observed in Western individualistic cultures.

Keywords

Citation

Webb Day, J., L. Holladay, C., K. Johnson, S. and G. Barron, L. (2014), "Organizational rewards: considering employee need in allocation", Personnel Review, Vol. 43 No. 1, pp. 74-95. https://doi.org/10.1108/PR-09-2012-0156

Download as .RIS

Publisher

:

Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.