Download or read book Sorting Effects of Performance Pay written by Maris Goldmanis and published by . This book was released on 2013 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Compensation not only provides incentives to an existing manager, but also affects the type of manager attracted to the firm. This paper examines the dual incentive and sorting effects of performance pay in a simple contracting model of endogenous participation. In general, sorting dampens optimal pay-performance sensitivity (PPS), as PPS beyond a nominal amount transfers unnecessary (information) rent to the manager. This helps explain why empirical estimates of PPS are much lower than predictions from models of moral hazard alone. The model also predicts that sorting under asymmetric information causes the firm to turn away more candidates than would be efficient; PPS increases in the cost of hiring the manager and in the manager's outside option, but decreases in output risk, information risk, and managerial risk-aversion; the firm becomes more selective in hiring as either the manager's outside option, the cost of hiring, risk-aversion, output risk, or information risk increases.
Download or read book Compensation written by Barry Gerhart and published by SAGE. This book was released on 2003-05-07 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: `Gerhart and Rynes provide a thorough, comprehensive review of the vast literatures relevant to compensation. Their insights regarding the integration of economic, psychological and management perspectives are particularly enlightening. This text provides an invaluable tool for those interested in advancing our understanding of compensation practices' - Alison Barber, Eli Broad College of Business, Michigan State UniversityCompensation provides a comprehensive, research-based review of both the determinants and effects of compensation. Combining theory and research from a variety of disciplines, authors Barry Gerhart and Sara Rynes examine the three major compensation decisions - pay level, pay structure and pay delivery systems.Revealing the impact of different compensation policies, this interdisciplinary volume examines: the relationship between performance-based pay and intrinsic motivation; implications of individual pay differentials for team or unit performance; the consequences of pay for performance policies; effect sizes and practical significance of compensation findings; and directions for future research.Compensation considers why organizations pay people the way they do and how various pay strategies influence the success of organizations. Critically evaluating areas where research is inconsistent with common beliefs, Gerhart and Rynes explore the motivational effects of compensation.Primarily intended for graduate students in human resource management, psychology, and organizational behaviour courses, this book is also an invaluable reference for compensation management consultants and organizational development specialists.
Download or read book Performance Pay Sorting and Social Motivation written by Tor Eriksson and published by . This book was released on 2007 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Experimental Examination of Incentive and Sorting Effects of Pay for performance on Creative Performance written by Ji Hyun Kim (Ph.D.) and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a longstanding debate about whether pay-for-performance (PFP) enhances or undermines creative performance. Traditional motivation and revised creativity theories suggest that PFP and intrinsic task interest combine additively to enhance creative performance, whereas cognitive evaluation theory (CET) and self-determination theory (SDT) posit an undermining effect of PFP on task interest and thus on intrinsic motivation and creative performance. To help resolve these conflicting predictions and provide a more comprehensive understanding of how and when PFP influences creative performance, the current study incorporated both incentive and sorting mechanisms of PFP, varying strengths of PFP, and task autonomy as a key moderator. A novel laboratory experiment was designed to capture key elements of workplace contexts, including in the design of the creative tasks, the choice of PFP strength based on benchmarking of U.S. companies' practices, and allowing participants to sort into different pay conditions, consistent with the opportunity for mobility in the labor market. Results showed that, through both incentive and sorting mechanisms, high PFP intensity more strongly enhanced creative performance than did low PFP intensity and both were superior to fixed pay. Importantly, task autonomy positively moderated the PFP-creative performance relationship such that creative performance under PFP increased much more under higher task autonomy. Finally, the difference in creative performance under PFP versus fixed pay was greater when participants were allowed to sort into their preferred pay conditions than when they worked only under randomly assigned pay conditions (typical in past research on PFP and creativity). Several theoretical and practical implications and future directions are discussed.
Download or read book A Dictionary of Human Resource Management written by Edmund Heery and published by Oxford University Press, USA. This book was released on 2008 with total page 552 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is an accessible source of definitions of words, terms, and phrases that are encountered in the fields of human resource management, personnel, and industrial relations.
Download or read book Compensation written by Barry Gerhart and published by SAGE. This book was released on 2003-05-02 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt: `Gerhart and Rynes provide a thorough, comprehensive review of the vast literatures relevant to compensation. Their insights regarding the integration of economic, psychological and management perspectives are particularly enlightening. This text provides an invaluable tool for those interested in advancing our understanding of compensation practices' - Alison Barber, Eli Broad College of Business, Michigan State UniversityCompensation provides a comprehensive, research-based review of both the determinants and effects of compensation. Combining theory and research from a variety of disciplines, authors Barry Gerhart and Sara Rynes examine the three major compensation decisions - pay level, pay structure and pay delivery systems.Revealing the impact of different compensation policies, this interdisciplinary volume examines: the relationship between performance-based pay and intrinsic motivation; implications of individual pay differentials for team or unit performance; the consequences of pay for performance policies; effect sizes and practical significance of compensation findings; and directions for future research.Compensation considers why organizations pay people the way they do and how various pay strategies influence the success of organizations. Critically evaluating areas where research is inconsistent with common beliefs, Gerhart and Rynes explore the motivational effects of compensation.Primarily intended for graduate students in human resource management, psychology, and organizational behaviour courses, this book is also an invaluable reference for compensation management consultants and organizational development specialists.
Download or read book Pay for Performance written by National Research Council and published by National Academies Press. This book was released on 1991-02-01 with total page 221 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Pay for performance" has become a buzzword for the 1990s, as U.S. organizations seek ways to boost employee productivity. The new emphasis on performance appraisal and merit pay calls for a thorough examination of their effectiveness. Pay for Performance is the best resource to date on the issues of whether these concepts work and how they can be applied most effectively in the workplace. This important book looks at performance appraisal and pay practices in the private sector and describes whetherâ€"and howâ€"private industry experience is relevant to federal pay reform. It focuses on the needs of the federal government, exploring how the federal pay system evolved; available evidence on federal employee attitudes toward their work, their pay, and their reputation with the public; and the complicating and pervasive factor of politics.
Download or read book Design of Incentive Systems written by Dennis D. Fehrenbacher and published by Springer Science & Business Media. This book was released on 2013-05-28 with total page 265 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monetary incentives, as a driving force for human behavior, are the main theme of this book. The primary goals underlying the application of monetary incentive systems in companies are motivating employees to strive for superior productivity in line with the interests of employers, and hiring adequately skilled employees. The first goal refers to incentive effects, the latter to sorting effects. This book introduces important theories and concepts concerning behavior under influence of monetary incentives; it reviews existing economic frameworks and identifies specific contingency variables. Based on an integrative framework of elements influencing incentive and sorting effects, a laboratory experiment is presented including detailed methodological discussion on experimentation and data analysis as well as an extensive presentation of findings and discussion of implications.
Download or read book Compensation and Organizational Performance written by Luis R. Gomez-Mejia and published by Routledge. This book was released on 2014-12-18 with total page 366 pages. Available in PDF, EPUB and Kindle. Book excerpt: This up-to-date, research-oriented textbook focuses on the relationship between compensation systems and firm overall performance. In contrast to more traditional compensation texts, it provides a strategic perspective to compensation administration rather than a functional viewpoint. The text emphasizes the role of managerial pay, its importance, determinants, and impact on organizations. It analyzes recent topics in executive compensation, such as pay in high technology firms, managerial risk taking, rewards in family companies, and the link between compensation and social responsibility and ethical issues, among others. The authors provide a thorough and comprehensive review of the vast literatures relevant to compensation and revisit debates grounded in different theoretical perspectives. They provide insights from disciplines as diverse as management, economics, sociology, and psychology, and amplify previous discussions with the latest empirical findings on compensation, its dynamics, and its contribution to firm overall performance.
Download or read book Human Resource Strategy written by Peter A. Bamberger and published by SAGE Publications. This book was released on 2000-02-15 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: Human Resource Strategy provides an overview of the academic and practitioner responses to these and other questions. Applying an integrative framework, the authors review twenty years' worth of empirical and theoretical research in an attempt to reconcile often-conflicting conceptual models and competing empirical results. The authors present much of the relevant research in the context of the critical strategic decisions that executives must actually make with regard to human resource investments and deployments. As a result, often complex theoretical models and scientific findings are presented such that they are not only understandable but also highly relevant to non-research-oriented practitioners.
Download or read book Strategic Compensation and Talent Management written by Jed DeVaro and published by Cambridge University Press. This book was released on 2020-04-02 with total page 407 pages. Available in PDF, EPUB and Kindle. Book excerpt: This engaging core textbook on compensation develops a market-driven perspective, written with managers in mind.
Download or read book Wage Dispersion written by Dale Mortensen and published by MIT Press. This book was released on 2003 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt: A theoretical and empirical examination of wage differentials findsthat traditional theories of competition do not explain why workers with identical skills are paid differently.
Download or read book The Structure of Wages written by Edward P. Lazear and published by University of Chicago Press. This book was released on 2009-05-15 with total page 473 pages. Available in PDF, EPUB and Kindle. Book excerpt: The distribution of income, the rate of pay raises, and the mobility of employees is crucial to understanding labor economics. Although research abounds on the distribution of wages across individuals in the economy, wage differentials within firms remain a mystery to economists. The first effort to examine linked employer-employee data across countries, The Structure of Wages:An International Comparison analyzes labor trends and their institutional background in the United States and eight European countries. A distinguished team of contributors reveal how a rising wage variance rewards star employees at a higher rate than ever before, how talent becomes concentrated in a few firms over time, and how outside market conditions affect wages in the twenty-first century. From a comparative perspective that examines wage and income differences within and between countries such as Denmark, Italy, and the Netherlands, this volume will be required reading for economists and those working in industrial organization.
Download or read book Compensation in Organizations written by Sara L. Rynes and published by Pfeiffer. This book was released on 2000-04-06 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Join the latest debate on the issues surrounding employment compensation. In Compensation and Organizations, a number of leading I/O psychologists and researchers explore the tremendous impact that recent changes in market conditions have had on today's compensation practices and outcomes. They delve into the effects that compensation has on employee performance, satisfaction, and attraction and retention, and examine the roles of pay strategy, pay risk, and the changing employment contract on pay packages and pay outcomes. They also offer nine general principles for constructing effective incentive systems. It's a broad-ranging work that summarizes the most important trends and conclusions in this important field and highlights areas in need of further research.
Download or read book The Handbook of Organizational Economics written by Robert S. Gibbons and published by Princeton University Press. This book was released on 2013 with total page 1248 pages. Available in PDF, EPUB and Kindle. Book excerpt: (E-book available via MyiLibrary) In even the most market-oriented economies, most economic transactions occur not in markets but inside managed organizations, particularly business firms. Organizational economics seeks to understand the nature and workings of such organizations and their impact on economic performance. The Handbook of Organizational Economics surveys the major theories, evidence, and methods used in the field. It displays the breadth of topics in organizational economics, including the roles of individuals and groups in organizations, organizational structures and processes, the boundaries of the firm, contracts between and within firms, and more.
Download or read book Merit Pay written by Robert L. Heneman and published by IAP. This book was released on 2004-12-01 with total page 309 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book was written to bring together a summary of the current knowledge on merit pay and to further advance understanding of this type of incentive pay plan. When the writing of the first edition was begun in 1989, there were no books devoted exclusively to the subject of merit pay. Thus, this book was written to fill a void in the compensation literature. Since then, surveys have shown that merit pay remains a frequently used method of incentive compensation, and research into the merit pay process continues to grow. However, other forms of incentive pay, such as gainsharing, continue to receive the most attention, as evidenced by the number of books and articles on this topic in the popular press. In response to the frequent use of merit pay in organizations and the growing body of research, a book-length treatment of merit pay was needed. What we hope to do with this second edition, beyond updating, is to link merit pay with the many changes going on in total compensation or "reward management" (R. Heneman, 2001a, 2002). We also will argue that, even among all the challenges and changes that organizations currently face, there is still "merit" in appropriately conceived and implemented merit pay plans (Bates, 2003c).
Download or read book The Oxford Handbook of Human Resource Management written by Peter Boxall and published by Oxford University Press. This book was released on 2008-06-05 with total page 732 pages. Available in PDF, EPUB and Kindle. Book excerpt: HRM is central to management teaching and research, and has emerged in the last decade as a significant field from its earlier roots in Personnel Management, Industrial Relations, and Industrial Psychology. People Management and High Performance teams have become key functions and goals for manager at all levels in organizations. The Oxford Handbook brings together leading scholars from around the world - and from a range of disciplines - to provide an authoritative account of current trends and developments. The Handbook is divided into four parts: * Foundations and Frameworks, * Core Processes and Functions, * Patterns and Dynamics, * Measurement and Outcomes. Overall it will provide an essential resource for anybody who wants to get to grips with current thinking, research, and development on HRM.
