{"title":"Comparisons of the effects of individual and collective performance-related pay on performance: A review","authors":"Stephen Wood , Silvia Leoni , Daniel Ladley","doi":"10.1016/j.hrmr.2023.100982","DOIUrl":null,"url":null,"abstract":"<div><p>Debate on whether performance-related pay enhances organizational performance has centred on individual-based systems. This paper reviews studies that compare these with collective-based systems such as team bonuses and profit-sharing. Analysis of such comparisons – both field and experimental studies – reveals that collective systems, either alone or in conjunction with individual systems, are associated with higher performance. In no study do individual incentives outperform collective systems. Tests for moderators were rare but suggest that task interdependency may enhance collective systems' effects. Tests of mediators are also rare but point to enhanced levels of cooperation and idea generation under collective systems. This review examines how the included studies contribute to our understanding of key issues in payment-systems research – the roles of sorting effects and free riding under collective systems, and whether financial incentives may undermine intrinsic motivation – and finds it is limited, suggesting future work should concentrate on these areas.</p></div>","PeriodicalId":48145,"journal":{"name":"Human Resource Management Review","volume":"33 4","pages":"Article 100982"},"PeriodicalIF":8.2000,"publicationDate":"2023-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Human Resource Management Review","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1053482223000359","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 1
Abstract
Debate on whether performance-related pay enhances organizational performance has centred on individual-based systems. This paper reviews studies that compare these with collective-based systems such as team bonuses and profit-sharing. Analysis of such comparisons – both field and experimental studies – reveals that collective systems, either alone or in conjunction with individual systems, are associated with higher performance. In no study do individual incentives outperform collective systems. Tests for moderators were rare but suggest that task interdependency may enhance collective systems' effects. Tests of mediators are also rare but point to enhanced levels of cooperation and idea generation under collective systems. This review examines how the included studies contribute to our understanding of key issues in payment-systems research – the roles of sorting effects and free riding under collective systems, and whether financial incentives may undermine intrinsic motivation – and finds it is limited, suggesting future work should concentrate on these areas.
期刊介绍:
The Human Resource Management Review (HRMR) is a quarterly academic journal dedicated to publishing scholarly conceptual and theoretical articles in the field of human resource management and related disciplines such as industrial/organizational psychology, human capital, labor relations, and organizational behavior. HRMR encourages manuscripts that address micro-, macro-, or multi-level phenomena concerning the function and processes of human resource management. The journal publishes articles that offer fresh insights to inspire future theory development and empirical research. Critical evaluations of existing concepts, theories, models, and frameworks are also encouraged, as well as quantitative meta-analytical reviews that contribute to conceptual and theoretical understanding.
Subject areas appropriate for HRMR include (but are not limited to) Strategic Human Resource Management, International Human Resource Management, the nature and role of the human resource function in organizations, any specific Human Resource function or activity (e.g., Job Analysis, Job Design, Workforce Planning, Recruitment, Selection and Placement, Performance and Talent Management, Reward Systems, Training, Development, Careers, Safety and Health, Diversity, Fairness, Discrimination, Employment Law, Employee Relations, Labor Relations, Workforce Metrics, HR Analytics, HRM and Technology, Social issues and HRM, Separation and Retention), topics that influence or are influenced by human resource management activities (e.g., Climate, Culture, Change, Leadership and Power, Groups and Teams, Employee Attitudes and Behavior, Individual, team, and/or Organizational Performance), and HRM Research Methods.