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Article
Publication date: 6 October 2023

Hui Chen, Jie Liu, Yu Wang, Ning Yang and Xiao-Hua (Frank) Wang

Proactive career behavior (PCB) is an effective form of career self-management that has positive impacts on individual career development and career success, and therefore, the…

Abstract

Purpose

Proactive career behavior (PCB) is an effective form of career self-management that has positive impacts on individual career development and career success, and therefore, the purpose of this paper is to explore the driving factors of PCB.

Design/methodology/approach

Drawing on the interactionist perspective and situational strength theory, this study examined the independent and joint effects of role commitment and pay-for-performance (PFP) on employees' PCB based on data collected from 298 Chinese private enterprise employees at two time points.

Findings

The authors found that occupational role commitment (ORC), parental role commitment (PRC) and PFP were positively related to PCB. Furthermore, PFP moderated the relationship between ORC/PRC and PCB, such that the two relationships were stronger when PFP was low.

Originality/value

Drawing on the interactionist perspective, the authors contribute to the literature on PCB by revealing novel antecedents of PCB: ORC, PRC and PFP. The authors also contribute to the situational strength theory by examining how role commitment and PFP may interact to impact employees' PCB. Finally, the authors are among the first to consider the effects of role commitment on individual career behaviors, thus extending the nomological network of role commitment.

Details

Career Development International, vol. 28 no. 6/7
Type: Research Article
ISSN: 1362-0436

Keywords

Article
Publication date: 25 September 2009

Qi Wei and Chris Rowley

Pay for performance has been studied in Western nations, but much less so in China and its non‐public enterprises. The purpose of this paper is to investigate the current…

2225

Abstract

Purpose

Pay for performance has been studied in Western nations, but much less so in China and its non‐public enterprises. The purpose of this paper is to investigate the current situation of pay for performance in China's non‐public firms, specifically the importance of pay for performance in the current pay system and reasons for adopting pay for performance plans by the management.

Design/methodology/approach

A multi‐case study of non‐public sector, knowledge intensive firms based in Shanghai, China is presented. In total, 12 private‐owned, joint ventures and multinational companies from pharmaceutical, information technology and investment industries are included.

Findings

This paper explores that pay for performance has been widely used in non‐public sector as an important component of the employee pay mix. Performance also plays a role as a key norm in employee pay determinant plans. Three major factors are identified as reasons for management to apply pay for performance plans. The first concerns external factors – market practices/best practices; while the other two factors are internal reasons – the need to attract and retain good performers as well as the need to improve employee performance.

Originality/value

This paper discusses the content and context changes of pay for performance practices in China after the economic reforms in 1978 to present. It is now evident that Chinese firms are becoming much more receptive to performance‐oriented rewards.

Details

Asia-Pacific Journal of Business Administration, vol. 1 no. 2
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 20 October 2022

Vishal Gupta, Shweta Mittal, P. Vigneswara Ilavarasan and Pawan Budhwar

Building on the arguments of expectancy theory and social exchange theory, the present study provides insights into the process by which pay-for-performance (PFP) impacts employee…

1206

Abstract

Purpose

Building on the arguments of expectancy theory and social exchange theory, the present study provides insights into the process by which pay-for-performance (PFP) impacts employee job performance.

Design/methodology/approach

Based on a sample size of 226 employees working in a technology company in India, the study examines the relationships between PFP, procedural justice, organizational citizenship behavior (OCB) and employee job performance. Data on perceptions of PFP and procedural justice were collected from the employees, data on OCB were collected from the supervisors and the data on employee job performance were collected from organizational appraisal records.

Findings

The study found support for the positive relationship between PFP and job performance and for the sequential mediation of the relationship between PFP and job performance via procedural justice and OCB. Further, procedural justice was found to mediate the relationship between PFP and OCB.

Research limitations/implications

The study was cross-sectional, so inferences about causality are limited.

Practical implications

The study tests the relationship between PFP and employee job performance in the Indian work context. The study shows that the existence of PFP is positively related to procedural justice which, in turn, is positively related to OCB. The study found support for the sequential mediation of PFP-job performance relationship via procedural justice and OCB.

Originality/value

The study provides an insight into the underlying process through which PFP is related to employee job performance. To the best of our knowledge, such a study is the first of its kind undertaken in an organizational context.

Details

Personnel Review, vol. 53 no. 1
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 9 October 2017

Ting Ren, Ruolian Fang and Zhen Yang

This paper aims to investigate the impact of pay-for-performance (PFP) perception and pay level satisfaction on work attitudes (job satisfaction, turnover intention and affective…

1927

Abstract

Purpose

This paper aims to investigate the impact of pay-for-performance (PFP) perception and pay level satisfaction on work attitudes (job satisfaction, turnover intention and affective commitment) and extra-role behaviors (discretionary effort and interpersonal helping), and further, how three aspects of conditional factors – intrinsic motivation, leader–member exchange (LMX) and perceived organizational support (POS) – moderate the main-effect relationships.

Design/methodology/approach

The study was conducted at a Chinese private-owned company in the beauty industry, and a survey was conducted with the frontline employees in each office, asking information about their perceptions and attitudes toward the PFP scheme implemented in the company, work attitudes and performance, individual characteristics and their perceptions of group and organizational characteristics.

Findings

Results show that PFP perception and pay level satisfaction are significant predictors of work attitudes and extra-role behaviors. Further, depending on the specific work outcome examined, the three conditioning factors are found to strengthen the hypothesized main-effect relationships. The findings of the study have important theoretical and practical implications for the implementation of PFP schemes in organizations.

Originality/value

The findings contribute to the scholarship on PFP schemes in two ways. First, the findings show that PFP perception and pay level satisfaction are important for understanding employee work attitudes and extra-role behaviors. Second, the investigation of the moderating roles that intrinsic motivation, LMX and POS play in the relationships of PFP perception and pay level satisfaction with the work outcomes provides evidence to the limited understanding about the conditions that may strengthen or weaken the effectiveness of PFP schemes.

Details

Journal of Chinese Human Resource Management, vol. 8 no. 2
Type: Research Article
ISSN: 2040-8005

Keywords

Article
Publication date: 17 August 2015

Yong Zhang, Lirong Long and Junwei Zhang

Previous studies concerning on the effect of reward on individual creativity have generated generally inconsistent conclusions. These ambiguities call for more studies to explore…

4765

Abstract

Purpose

Previous studies concerning on the effect of reward on individual creativity have generated generally inconsistent conclusions. These ambiguities call for more studies to explore the potential boundary conditions under which reward may or may not promote creativity. The purpose of this paper is to clarify how pay for performance (PFP), a specific type of extrinsic reward awarded in field settings, impacts employees’ creative self-efficacy, and their creativity under varying levels of procedural justice as well as willingness to take risks.

Design/methodology/approach

This study used a survey method to investigate nine enterprises in China. A total of 236 matched subordinate-supervisor questionnaires were returned (a 94.4 percent response rate). Because of missing data, the final usable sample comprised 213 subordinate-supervisor matched questionnaires.

Findings

The results suggest that for employees with low procedural justice perception or low willingness to take risks, PFP was negatively related to creative self-efficacy and creativity; where procedural justice or willingness to take risks was high, those relationships were positive. In addition, moderated path analysis revealed that when procedural justice or willingness to take risks was high, PFP had a positive indirect effect on creativity via creative self-efficacy, whereas when procedural justice or willingness to take risks was low, the indirect effects of PFP on creativity via creative self-efficacy were negative.

Research limitations/implications

The findings shed light on the process through which and the conditions under which PFP may promote creativity.

Practical implications

The findings have concrete implications for how to leverage PFP to enhance employee creativity through creative self-efficacy.

Originality/value

The results further underscore the need to rethink the simple reward-promotes (or hinders)-creativity model in order to think in more complex ways about how and under what conditions PFP might promote or inhibit creativity. Second, the results of this research better explain how PFP promotes or inhibits creative performance by pointing to the important mediating role of creative self-efficacy. Finally, the results indicated that social cognitive theory can be used as an overarching theory to clarify how and why reward can influence creativity. Thus, the research contributes to the current literature by developing a new theoretical perspective for exploring the relation of reward to creativity.

Details

Management Decision, vol. 53 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 13 June 2018

Hyunkang Hur

The purpose of this paper is to estimate the impact of a pay-for-performance (PFP) rule change on US Department of Defense (DoD) employees’ job satisfaction by looking at changes…

Abstract

Purpose

The purpose of this paper is to estimate the impact of a pay-for-performance (PFP) rule change on US Department of Defense (DoD) employees’ job satisfaction by looking at changes in the DoD’s National Security Personnel System.

Design/methodology/approach

The data for the analysis are derived from the 2002, 2004, 2006 and 2008 Federal Human Capital Survey. A difference-in-differences (DID) quasi-experimental methodology was used to examine the effect of a PFP rule change on DoD employee job satisfaction. The Department of Air Force and Navy are analyzed as a proxy for the DoD. This study also undertakes a subgroup analysis strategy to understand the effect of PFP systems on specific subgroups (classified by gender, race and supervisory status).

Findings

This study’s results indicate that the overall effect of the introduction of a new PFP rule at DoD is a decrease of approximately 7.9 percentage points in employee job satisfaction, which is a substantial negative effect. In addition, this paper further finds that DoD’s PFP system has widened the gender gap in job satisfaction at DoD.

Originality/value

This study contributes to both the theoretical and the empirical understanding of PFP systems and public employee work morale and attitudes.

Details

International Journal of Public Sector Management, vol. 31 no. 6
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 9 September 2020

Mark Williams, Ying Zhou and Min Zou

This study aims to address the question of why organizations do not uniformly apply pay for performance (PFP) throughout the organization, focusing on the wider occupational…

Abstract

Purpose

This study aims to address the question of why organizations do not uniformly apply pay for performance (PFP) throughout the organization, focusing on the wider occupational structure in which they and the jobs they create are embedded. The authors propose a model of “occupational differentiation” whereby the probability of a job within a given organization having PFP increases with the levels of monitoring difficulty and requisite human asset specificity characterizing the occupation to which a job belongs, being highest in occupations characterized by high levels of both (generally managerial and professional occupations).

Design/methodology/approach

Using the Workplace Employment Relations Survey (a nationally representative matched employer–employee dataset for Britain), this paper investigates this question for all 350 occupations delineated by the UK's Office for National Statistics using regression methods that adjust for other confounding factors such as demographic factors and workplace fixed effects.

Findings

The authors find organizations “occupationally differentiate” the use of PFP in ways consistent with the model, i.e. PFP is most likely to be found in occupations characterized by both high monitoring difficulty and high requisite human asset specificity (mainly managerial and professional occupations) and least likely in occupations scoring low in both. The finding holds across PFP types (individual, group, organizational), whether organizations are large or small, and hold across most industrial sectors.

Research limitations/implications

The main implication of this study is that organizations appear to be taking into consideration whether the wider profession to which a job belongs when implementing PFP, irrespective of their own human resource management strategies and organizational context. There are a few limitations to this study, with the main one being that this model is mainly confined to empirical support is only found in the private sector. The public sector appears to be beyond the reach of the model, where PFP implementation is generally rarer. A second limitation is that the dataset is from 2011 and only covers a single country.

Practical implications

Given organizations appear to be implementing PFP based on occupation, this may lead to equity concerns, as different groups are being treated differently within organizations based upon their occupational group.

Social implications

As PFP jobs tend to pay more than non-PFP jobs and PFP prevalence has been growing, by being more likely to implement it for generally high-paid groups (generally higher managerial and professional occupations), PFP may contribute to wider pay differentials within and between organizations.

Originality/value

By introducing the occupational-level of analysis and the differential nature of tasks across occupational groups, the model offers a new midrange, sociological perspective to understanding intra-organizational dynamics in PFP use and potentially human resource practices more broadly.

Details

International Journal of Manpower, vol. 42 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 April 2003

Dion H. Goh and Rebecca P. Ang

Pay for performance (PFP) search engines provide search services for documents on the Web, but unlike traditional search engines, they rank documents not on content…

1034

Abstract

Pay for performance (PFP) search engines provide search services for documents on the Web, but unlike traditional search engines, they rank documents not on content characteristics, but according to the amount of money the owner of a Web site is willing to pay if a user visits the Web site through the search results pages. A study was conducted to compare the retrieval effectiveness of Overture (a PFP search engine) and Google (a traditional search engine) using a test suite of general knowledge questions. A total of 45 queries, based on a popular game show, “Who wants to be a millionaire?”, were submitted to each of these search engines and the first ten documents returned were analysed using different relevancy criteria. Results indicated that Google outperformed Overture in terms of precision and number of queries that could be answered. Implications for this study are also discussed.

Details

Online Information Review, vol. 27 no. 2
Type: Research Article
ISSN: 1468-4527

Keywords

Book part
Publication date: 18 December 2016

C. Bram Cadsby, Fei Song and Francis Tapon

We demonstrate in a laboratory experiment that the effectiveness of performance-contingent incentives is inversely related to risk-aversion levels. For about 16.5% of…

Abstract

We demonstrate in a laboratory experiment that the effectiveness of performance-contingent incentives is inversely related to risk-aversion levels. For about 16.5% of participants, performance fails to improve under performance-pay, and the probability of such failure increases with risk-aversion. This phenomenon works in part through the reduced effort level of more risk-averse individuals when effort level is positively correlated with risk exposure. It is also associated with higher self-reported levels of stress by more risk-averse people working under performance-contingent pay. We find no evidence of such stress causing decrements in the quality of effort affecting performance after controlling for effort level. However, controlling for effort, more risk-averse participants perform better under a fixed salary, leaving less room for improvement under performance-pay.

Details

Experiments in Organizational Economics
Type: Book
ISBN: 978-1-78560-964-0

Keywords

Article
Publication date: 7 January 2021

Helen Hayes, Jonathan Stokes, Søren Rud Kristensen and Matt Sutton

Three types of payment methods have been introduced across European countries in attempts to encourage better, more integrated care of persons with multimorbidity…

Abstract

Purpose

Three types of payment methods have been introduced across European countries in attempts to encourage better, more integrated care of persons with multimorbidity: pay-for-performance; pay-for-coordination; and an all-inclusive payment method. We examine whether there are differences in the way these payment methods affect health and healthcare use in persons with multimorbidity.

Design/methodology/approach

Using individual-level survey data from twenty European countries, we examine unadjusted differences in average outcomes for the years 2011–2015 by whether countries adopted new payment methods for integrated care. We then test for a differential effect for multimorbid persons using linear, individual random effects regressions, including country and time fixed effects and clustering standard errors at the country level.

Findings

We find little effect of varying payment methods on key outcomes for multimorbid individuals despite the theoretical predictions and the rhetoric in many policy documents.

Research limitations/implications

Policymakers should bear in mind that the success of the payment method relies on the specific design of the incentives and their implementation. New effective models of care and how to incentivise these for multimorbid patients is an ongoing research priority.

Originality/value

This paper is the first to study the effects of payments for integration on the dimensions and populations these schemes intend to affect; health and healthcare use at the individual level for multimorbid individuals.

Details

Journal of Health Organization and Management, vol. 35 no. 3
Type: Research Article
ISSN: 1477-7266

Keywords

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