Person-based differences in pay reactions: A compensation-activation theory and integrative conceptual review.

Fulmer, Ingrid Smithey; Shaw, Jason D.

doi:10.1037/apl0000310

Cited by 32 publications

(52 citation statements)

References 148 publications

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“…In total, this research contributes to the reward-creativity debate by identifying the cultural value of collectivism as a vital individual difference and an attribute that can shape the relationship between PFIP and employee creativity in the organizational context. Our findings also provide empirical evidence for CAT (Fulmer & Shaw, 2018), suggesting that employees with different cultural values make sense of and respond to the situational cues created by PFIP in different ways. Furthermore, our research findings concerning the moderating effects of vertical and horizontal collectivist orientations provide a microperspective for understanding the influence of individual cultural values on the effectiveness of organizational pay practices (Gerhart & Fang, 2014;Kim, Wang, Chen, Zhu, & Sun, 2019;Sanders et al, 2018).…”

Section: Introductionsupporting

confidence: 55%

“…The CAT recently developed by Fulmer and Shaw (2018) provides a microlens through which one can observe how individuals differ in their psychological reactions to pay system attributes. The central tenet of CAT is that the motivational strength of pay systems depends on the extent to which the situational cues embedded within a particular pay practice fit individuals' fundamental social motives (e.g., selfprotection, affiliation, and status seeking).…”

Section: Intrinsic Motivation As a Crucial Mechanismmentioning

confidence: 99%

“…Self-determination theory (SDT; Ryan & Deci, 2000) modifies and extends cognitive evaluation theory by emphasizing that an autonomy-supportive context can mitigate or even reverse the negative effect of PFIP on intrinsic motivation. Moreover, the recently developed compensation-activation theory (CAT; Fulmer & Shaw, 2018) underscores the pivotal role of individual differences in determining the effects of pay systems. Extensive empirical studies conducted in organizational settings have revealed that PFIP is positively related to intrinsic motivation and employee creativity (Eisenberger & Aselage, 2009;Eisenberger & Rhoades, 2001), particularly among certain groups of employees and in certain situations (Li, Deng, Leung, & Zhao, 2017;Malik, Butt, & Choi, 2015;Zhang, Long, Wu, & Huang, 2015).…”

Section: Introductionmentioning

confidence: 99%

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Does pay for individual performance truly undermine employee creativity? The different moderating roles of vertical and horizontal collectivist orientations

Zhang

Long

et al. 2021

Human Resource Management

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The extant literature has generated inconclusive findings concerning the effect of pay for individual performance (PFIP) on creativity. Supplementing self-determination theory with compensation-activation theory, we theorized and tested the moderating roles of individual cultural values of vertical and horizontal collectivist orientations on the relationship between PFIP and employee creativity as mediated by intrinsic motivation. The empirical results of two field studies provided convergent support for the intrinsic motivation mechanism underlying the positive relationship between PFIP and employee creativity among individuals with high vertical (but not horizontal) collectivist orientations. These findings highlight the importance of considering individual differences in cultural values in understanding how extrinsic rewards affect creativity.

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Section: Introductionsupporting

confidence: 55%

Section: Intrinsic Motivation As a Crucial Mechanismmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Does pay for individual performance truly undermine employee creativity? The different moderating roles of vertical and horizontal collectivist orientations

Zhang

Long

et al. 2021

Human Resource Management

View full text Add to dashboard Cite

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“…This is important for compensation research as it creates new knowledge about which employees are attracted by different pay procedures and how individuals vary in their feelings towards pay (cf. Fulmer and Shaw, 2018).…”

Section: Discussionmentioning

confidence: 99%

“…In this way, the research will enrich the extant pay satisfaction literature by including the concept of work orientation. This is relevant for compensation research, which has shown increasing interest in how individuals' reactions to pay vary as part of the interplay between pay systems and personal characteristics (Fulmer and Shaw, 2018). This paper studies adults working in the public sector in Finland -a genderequal country-which, however, has a persistent gender pay gap (World Economic Forum, 2020).…”

Section: Introductionmentioning

confidence: 99%

The role of work orientation and gender on feelings toward pay

Ikävalko

Kohvakka²

2020

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Purpose This paper aims to examine the moderating effect of employees’ work orientation and gender on their feelings toward pay, that is, the relationship between perceived fairness of a pay system and pay level satisfaction. The perceived fairness of pay system is investigated with two pay system procedures, namely, job evaluation and performance evaluation, both determining the level of base pay. Design/methodology/approach Survey data were collected from three public sector organizations in Finland (N = 526). Linear regression analysis was used to investigate the relationship between pay satisfaction, pay system fairness, work orientation and gender. Findings The results show that employees’ work orientation significantly and negatively relates to pay satisfaction. The interaction analyses suggest significant gender differences in the relationship between work orientation and pay satisfaction, as work orientation is negatively associated with pay satisfaction for women. They also show that work orientation and job evaluation fairness have a positive, joint effect on pay satisfaction. Practical implications This study has implications for the implementation of fair pay practices in organizations. The role of work orientation in the relationship between job evaluation fairness and pay satisfaction highlights the importance of pay system fairness especially among work-oriented employees. Special attention should be paid on work-oriented women: With equal perception of pay system fairness, work-oriented women feel unsatisfied with their pay. Originality/value This paper is the first study to highlight the role of work orientation and gender in reactions related to pay.

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Incongruous employer brand signals and organizational attractiveness: Evidence from multinational companies in China

Wang

Han

Ramasamy

et al. 2022

Human Resource Management

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In an era of information explosion, employers' information is often disclosed to employees and potential applicants from multiple channels and angles, which are usually combinations of positive and negative signals. How do such uncoordinated brand signals affect the attractiveness of an organization? Building on micro‐corporate social responsibility (CSR) literature and three studies, we found that when potential employees perceived imbalanced brand signals of CSR and corporate ability, the positive impact of CSR on organizational attractiveness was strengthened when the company was weaker in its corporate ability. When they perceived conflicting brand signals of corporate social irresponsibility (CSiR) and corporate ability, the negative impact of CSiR on organizational attractiveness was strengthened when the company was stronger in its corporate ability. Supplementary analyses also demonstrated a significant three‐way interaction among CSR, CSiR, and corporate ability. When such conflicting brand signals were presented, CSR weakened CSiR's negative impact when corporate ability was stronger. However, when corporate ability was weaker, CSR strengthened the negative impact of CSiR on organizational attractiveness. Our study offers guidance for companies with mixed employer brand signals and suggests enhancing applicant attraction via synergy among a company's public relations, human resources, and marketing functions.

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Person-based differences in pay reactions: A compensation-activation theory and integrative conceptual review.

Cited by 32 publications

References 148 publications

Does pay for individual performance truly undermine employee creativity? The different moderating roles of vertical and horizontal collectivist orientations

Does pay for individual performance truly undermine employee creativity? The different moderating roles of vertical and horizontal collectivist orientations

The role of work orientation and gender on feelings toward pay

Incongruous employer brand signals and organizational attractiveness: Evidence from multinational companies in China

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