The relationship of financial incentives to performance quality and quantity is cumulated over 39 studies containing 47 relationships. Financial incentives were not related to performance quality but had a corrected correlation of .34 with performance quantity. Setting (laboratory, field, experimental simulation) and theoretical framework moderated the relationship, but task type did not.

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The compensation literature is replete with arguments, but lacking in empirical tests, regarding the effects of pay dispersion on organizational outcomes. Pay dispersion may increase effort and provide incentives for high workforce performance levels, but may also inhibit cooperation and goal orientation among employees. Drawing on several theoretical perspectives (individual motivation, institutional theory, organizational justice, and neoclassical economics), this study predicts that pay dispersion will be associated with higher levels of workforce performance when accompanied by formal individual incentive systems and independent work, while pay compression is desirable in the absence of individual incentive systems and when work is interdependent. Survey research studies in two industrial sectors (the motor carrier and concrete pipe industries) were conducted to address these issues. Interactive regression results were generally supportive of the predictions across several measures of workforce performance (accident rates, safety violations, and productivity). Implications of these studies for strategy implementation in terms of compensation theory and practice are addressed. Copyright © 2002 John Wiley & Sons, Ltd.

Although there are many individual-level models of turnover, little research has examined the effects of human resource management practices on quit rates and discharge rates at the organizational level. This study used organization-level data from 227 organizations in the trucking industry to explore this issue. Results show that human resource management practices predict quit rates and discharge rates hut that the determinants of each are quite different. Implications are derived and directions for future research suggested. Turnover is the subject of much research in the organizational sciences and economics. It is critical from individual, organizational, and industry perspectives. Yet most of the over 1,500 studies in the organizational sciences (Muchinsky & Morrow, 1980) on this topic focus on individual-level predictors of turnover. In contrast, economists typically examine turnover from an industry perspective (Camphell, 1993), using predictors such as unemployment levels (Hulin, 1979) and lahor force composition (Wachter & Kim, 1979), This research leaves a critical gap-the determinants of turnover at the organizational level. The importance of organization-level turnover studies has been implicitly or explicitly recognized in the organizational (e.g., Roberts, Hulin, & Rousseau, 1978) and strategic human resource management (e.g,, Huselid, 1995) literatures but has rarely been addressed specifically. Also lacking in the literatures is differentiation between "voluntary" and "involuntary" turnover. Individual researchers have acknowledged this distinction, but the two types of turnover are collapsed in nearly all organizational studies (