Does pay‐for‐performance enhance perceived distributive justice for collectivistic employees?

Abstract

PurposeTo examine the effect of pay‐for‐performance on distributive justice and the moderating effect of commitment performance appraisal in the case of Korean employees.Design/methodology/approachData were collected from 28 companies and 656 employees. Moderated regression analyses were employed.FindingsFindings show that pay‐for‐performance enhances employees' perception of distributive justice only when there is a commitment performance appraisal practice. Additional analysis shows that the commitment performance appraisal practices of a company influence employee perceptions of such practices in a U‐shape fashion.Research limitations/implicationsSince, data were collected from 28 companies, the results may need to be modified before being generalized to/for Korean companies.Practical implicationsIt is notable that only when accompanied by commitment performance appraisal does pay‐for‐performance enhance employee perception of distributive justice. Managers in Korean companies should consider implementing commitment appraisal practices when they want to utilize pay‐for‐performance.Originality/valueThis paper notes the fundamental changes in the pay systems in Korean companies, and offers practical implications for managers starting out on a pay‐for‐performance system.

Experiências de sistemas de avaliação de desempenho vinculados à remuneração

“…KILDUFF et al, 2000;HIGGS, 2005). Uma variedade de técnicas de avaliação estão disponíveis para medir o desempenho (CHANG e HAHN, 2006;JIANG et al, 2001;ARMENTROUT, 1986;ARVEY e MURPHY, 1998;SANCHEZ e DE LA TORRE, 1996;STRONGE, 1991). Para Sultana et al (2013), na criação e implementação de um sistema de avaliação, a administração deve determinar para qual finalidade o sistema de avaliação de desempenho vai ser utilizado e, em seguida, sobre o processo para implementar o sistema.…”

The informal dimension of human resource management in Korea: Yongo, recruiting practices and career progression

“…Although several facets of the new (post-crisis) Korean management system have been explored (e.g. organizational commitment and performance-based pay: Chang, 2006;Chang & Hahn, 2006;rewards: Wei & Rowley, 2009; recruitment and selection: Kim, 2008;layoffs: Kim & Choi, 2010), this important and context-relevant link remains unconsidered so far.…”

Designing the Expert Systems for Senior Managers' Performance Evaluation

“…Designing and developing performance evaluation information systems is a vital issue in this regard. There are various evaluation techniques presently used by different organizations in forms of ranking, trait scale, critical incident, narrative; and criteria based [3,[5][6][7]. Ying-Feng and Ling-Show [8] conducted a study for measuring performances of lecturers working in universities of Taiwan by employing fuzzy synthetic decision approach.…”