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Pay for Performance Incentives and Work Attitudes
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Robert Drago, Saul Estrin and Mark Wooden
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Abstract
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Using survey data from 565 private sector employees in Australia, this article tests how performance-related incentives influence worker attitudes. It is concluded that job satisfaction is related to incentives based on individual or small group performance, while organisational commitment is more strongly related to company-level incentives (gains-sharing). Tests for the bundling of incentives and participatory management and for the interactive effects of incentives, participatory management and job security are insignificant in this data set.
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Download this article.
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Keywords
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INCENTIVES; PERFORMANCE-RELATED PAY; GAINS-SHARING; EMPLOYEE OWNERSHIP; JOB SATISFACTION; ORGANISATIONAL COMMITMENT.
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Contact Details
Robert Drago
Department of Economics
University of Wisconsin-Milwaukee
U.S.A.
Saul Estrin
London Business School
London UK
Mark Wooden
National Institute of Labour Studies
Flinders University of South Australia
GPO Box 2100
Adelaide SA 5001
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The collection of the data used in this study was funded by the Business Council of Australia Industrial Relations Study Commission, whom the authors thank.
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