The Effects of Performance Measurement and Compensation on Motivation

Research, Preprint English OPEN
van Herpen, Marco; van Praag, C. Mirjam; Cools, Kees;
(2003)
  • Publisher: Tinbergen Institute Amsterdam and Rotterdam
  • Subject: Leistungsanreiz | J41 | J33 | Betriebliche Kennzahl | Performance measurement | Promotions | Leistungsmotivation | Leistungsentgelt | Performance measurement; Compensation; Promotions; Intrinsic Motivation; Extrinsic Motivation. | Compensation | Intrinsic Motivation | Extrinsic Motivation.
    • jel: jel:J41 | jel:J33
      ddc: ddc:330

This paper analyzes empirically the relationship between pay and performance. Economic and psychological theories predict that the design and implementation of a performance measurement and compensation system affect the motivation of employees. Our survey results demon... View more
  • References (7)

    Lawler, E.E. 1986. The design of effective reward system. In Lorsch, J. (Ed.), Handbook of organizational behavior, Englewood Cliffs (NJ): Prentice-Hall.

    Lazear, E.P., & Rosen, S. 1981. Rank-order tournaments as optimum labor contracts. Journal of political economy, 89: 841-864.

    Locke, E.A., & Henne, D. 1986. Work motivation theories. In C.L. Cooper & I. Robertson (Eds.), International review of industrial and organizational psychology, 1-35. Chichester (UK): Wiley

    Murphy, K.J. 1999. Executive compensation. In O. Ashenfelter & D.Card (Eds.), Handbook of labor economics, Vol. 3: 2485-2563. Amsterdam (Netherlands): North Holland.

    Osterloh, M., & Frey, B.S. 2000. Motivation, knowledge transfer, and organizational forms. Organization science, 11: 538-550.

    Prendergast, C. 1999. The provision of incentives in firms. Journal of economic literature, 37: 7-63.

    Thierry, H. 1987. Payment by result systems: a review of research 1945-1985. Applied psychology, 36: 91-108.

  • Similar Research Results (3)
  • Metrics
Share - Bookmark