Improving Employee Acceptance Toward Performance Appraisal and Merit Pay Systems

Gabris, Gerald T.; Ihrke, Douglas M.

doi:10.1177/0734371x0002000104

Cited by 80 publications

(82 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Previous research has emphasized the importance of leader motivation in the success of the merit pay and performance appraisal systems (Gabris and Ihrke, 2000).…”

Section: Managerial Implicationsmentioning

confidence: 99%

Perceptions of politics and fairness in merit pay

Salimäki¹,

Jämsén²

2010

Journal of Managerial Psychology

View full text Add to dashboard Cite

Purpose: Employee perceptions of politics and fairness were studied in a work setting where a new merit pay system had recently been implemented.Design/methodology/approach: Based on the literature on organizational politics, equity, procedural justice, and social exchange theory, we expected that employee perceptions of politics and fairness are associated with the perceptions of merit pay effectiveness. The results are based on employee survey responses from three governmental organizations (N=367) that had implemented analogous merit pay systems. Findings:Hierarchical moderated regression results indicated that perceptions of politics and fairness distinctively and interactively predicted whether the pay system was perceived effective in achieving its objectives. The results suggest that some forms of politics in performance appraisals (e.g., compression) might be perceived less detrimental than others (e.g., favoritism). In a high politics environment, the pay system effectiveness varied as a function of the level of distributive justice. Voice in the pay system development only mattered in a situation where there was a low level of organizational politics. Research implications/limitations:One of the main limitations of this study is its reliance on cross-sectional data. Future research should complement employee perceptions about pay system effectiveness with objective data from the organizations studied. Research on the effect of contextual factors, such as national culture on the motives in and reactions to organizational politics, is desired. Practical implications:The result suggests that the adopted merit pay systems were not ineffective or detrimental per se, but that the effectiveness varied as a function of the established political and fairness climates at different levels of the organization. Originality/value:This study contributes to the discussion on what are the conditions under which politics and fairness are antithetical, and when they are interactively associated with outcomes.

show abstract

“…Previous research has emphasized the importance of leader motivation in the success of the merit pay and performance appraisal systems (Gabris and Ihrke, 2000).…”

Section: Managerial Implicationsmentioning

confidence: 99%

Perceptions of politics and fairness in merit pay

Salimäki¹,

Jämsén²

2010

Journal of Managerial Psychology

View full text Add to dashboard Cite

show abstract

“…The reasons behind the perceptions are varied and sometimes difficult to identify, but include low levels of organisational trust (Condrey and Brudney, 1992), lack of transparency in the systems for employees (Egger-Peitler, Hammerschmid and Meyer, 2007), lack of trust in performance-rating systems (Kellough and Selden, 1997), and lack of leadership credibility (Gabris and Ihrke, 2000). Finally, regardless of organisational level, improvements in performance measurement and management that are independent of pay incentives may account for performance increases by improving goal setting.…”

Section: Contextual Factors Affecting Performance-based Paymentioning

confidence: 99%

Performance-Based Pay as a Motivational Tool for Achieving Organisational Performance: An Exploratory Case Study

Boachie-Mensah¹,

Dogbe²

2011

IJBM

View full text Add to dashboard Cite

The issue of employees' performance in furtherance of organisational objectives has occupied management attention for long. Differences in levels of performance have been attributed to differences in skills and abilities on the one hand, and to different theories of money on the other. This study examined the issue of performance-based pay as a motivational tool for achieving organisational performance, using the situation in a manufacturing company in Ghana as a case study. The main objective of the study was to assess the impact of performance-related pay on the motivation of employees and, subsequently, on the achievement of organisational goals. In all, one hundred and fifty respondents took part in the survey. The sample comprised 20 managerial staff and 60 non-managerial staff. The main research instrument was the questionnaire. A two-way ANOVA table was used to test the main hypotheses. The result of the study revealed that the effect of performance-based pay on employee performance is minimal; and the motivational effect of merit pay is often blunted by biased performance appraisal. The main limitation of the study is that it could not cover all manufacturing companies within the target population, due to time and financial constraints. In this respect, the interpretation of the results of the study should not be over-generalised.

show abstract

“…Semakin beragam level penilai kinerja dan mekanisme penilaian kinerja maka akan semakin obyektif penilaiannya dan diharapkan semakin kecil penerimaan perilaku tuna fungsinya. Sistem penilaian kinerja terkadang dapat berjalan tidak lancar, salah satunya karena tidak adanya rasa memiliki karena karyawan tidak dilibatkan dalam proses sehingga mereka tidak terlatih, serta perbedaan kredibilitas atasan sebagai penilai (Gabris & Ihrke 2000;Grote 2002). Di sisi lain faktor subjektifitas seperti diskriminasi dalam lingkungan kerja, budaya, ras, jenis kelamin, struktur organisasi, stereotip umum, distorsi persepsi, dan perilaku sosial juga dapat mempengaruhi (Millmore, (Hair et al, 1998).…”

Section: Hubungan Antara Penilai Kinerja Auditor Dengan Penerimaan Peunclassified

Perilaku Tuna Fungsi Auditor: Pengujian atas Karakteristik Personal dan Penilai Kinerja Auditor

Hapsari

2016

jeb

View full text Add to dashboard Cite

show abstract

Improving Employee Acceptance Toward Performance Appraisal and Merit Pay Systems

Cited by 80 publications

References 10 publications

Perceptions of politics and fairness in merit pay

Perceptions of politics and fairness in merit pay

Performance-Based Pay as a Motivational Tool for Achieving Organisational Performance: An Exploratory Case Study

Perilaku Tuna Fungsi Auditor: Pengujian atas Karakteristik Personal dan Penilai Kinerja Auditor

Contact Info

Product

Resources

About