2017
DOI: 10.1177/0734371x17715502
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Making Performance Pay Work: The Impact of Transparency, Participation, and Fairness on Controlling Perception and Intrinsic Motivation

Abstract: Performance pay has been one of the main trends in public sector reform over the last decade and aims to increase employees’ motivation. However, positive results are sparse. In a majority of cases, pay scheme designers neglect that intrinsic motivation may be distorted by the introduction of extrinsic rewards (crowding out). Nevertheless, under certain conditions, performance pay schemes may also enhance intrinsic motivation (crowding-in). The perception of rewards has proven to be an especially crucial facto… Show more

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Cited by 40 publications
(32 citation statements)
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References 92 publications
(156 reference statements)
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“…At this second, anthropological, stage, the psychology of motivation almost coincides with the psychology of personality. Moreover, the basic content of most theories of personality is the model of motivation, driving forces of behavior and development (theories of Gizhitsky (2014), Meguid and Khalil (2017), Tang et al (2019), Wenzel, Krause and Vogel (2019), Wilkinson, Wells and Bushnell (2007)). Duckworth, Kirby, Tsukayama, Berstein and Ericsson (2011) emphasize that the psychology of motivation is also characterized by the fact, according to which the problems of choice, freedom, will, control over motivation, life objectives, prospects for the future, self-regulation come to the fore.…”
Section: To Conduct An Analysis Of Research Motivesmentioning
confidence: 99%
“…At this second, anthropological, stage, the psychology of motivation almost coincides with the psychology of personality. Moreover, the basic content of most theories of personality is the model of motivation, driving forces of behavior and development (theories of Gizhitsky (2014), Meguid and Khalil (2017), Tang et al (2019), Wenzel, Krause and Vogel (2019), Wilkinson, Wells and Bushnell (2007)). Duckworth, Kirby, Tsukayama, Berstein and Ericsson (2011) emphasize that the psychology of motivation is also characterized by the fact, according to which the problems of choice, freedom, will, control over motivation, life objectives, prospects for the future, self-regulation come to the fore.…”
Section: To Conduct An Analysis Of Research Motivesmentioning
confidence: 99%
“…Their dissatisfaction which stems out of huge disparity in pay with their colleagues in the same organization likely make them feel, perhaps, they are in the wrong job or place. This can lead to a high turnover rate, especially when a huge number of employees do not qualify for employment rewards (Wenzel, Krause, & Vogel, 2017). Organizations experiencing high employee turnover are likely to experience an increase in the cost of human capital.…”
Section: Saudi Arabian Contextmentioning
confidence: 99%
“…Similar to bonus, Profit-sharing PRP schemes focus on the overall organizational performance. Employees are guaranteed a share of the profit when the company surpasses a preset profit margin (Wenzel et al, 2017). Unlike other PRP schemes which reward individual performance, this scheme encourages employee collaboration across all levels, employees are motivated and aware of their inability to meet individual performance targets will cost other employees additional income.…”
Section: Performance Measures: Linking Productivity To Paymentioning
confidence: 99%
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“…Motivation is generally divided into two categories: intrinsic motivation and extrinsic motivation. Intrinsic motivation stems from one's desire to perform a task for its inherent satisfaction, whereas extrinsic motivation is defined as performing a task due to an external control such as achieving a reward or avoiding a negative consequence (Ryan and Deci, 2000;Wenzel et al, 2019;Wu et al, 2019). In medical education, there are many intrinsic and extrinsic factors that motivate students (Kunanitthaworn et al, 2018;Ommering et al, 2018;Pace et al, 2018;Rockich-Winston et al, 2018).…”
Section: Introductionmentioning
confidence: 99%