Pay for Performance : History, Controversy, and Evidence

This book aims to provide a comprehensive examination of pay for performance theories and a fresh look at how they can be used successfully in organizational behaviour management. "Pay for Performance" provides a wealth of background information and research to enhance manager's understanding of this controversial issue. The present status of pay for performance is made clear through a history of the movement. Divided into four categories for easy comprehension, the detailed history focuses on the intuitive use of pay for performance in ancient times, industrialism and the development of marginal productivity equilibrium analyses, practitioner-oriented incentive plans, and finally the age of social scientists and a diminished role for pay and increased emphasis on group participation and nonfinancial rewards. Managers may find inspiration for the development of their own pay for performance experiments in an illustration of the notable long-term success story of the Lincoln Electric Company. Researchers in the field of organizational behaviour management will appreciate the in-depth discussion of early research, such as the misinterpeted results of the Hawthorne Experiment, a comprehensive review of some of the better research conducted over the years, and some promising research developments that offer encouragement for the future. This ground-breaking research should inspire large-scale, systematic, and well-controlled field experiments to collect answers to the remaining questions regarding the widespread implementation of pay for performance plans. The research and analysis presented in "Pay for Performance" may help researchers and managers develop strategies to successfully utilize pay for performance incentives.