Pay for Individual Performance: Aiding or Harming Sustainable Intrinsic Motivation?

Cabanas, Sara; Proença, Teresa; Carozzo-Todaro, Mauro Enrique

doi:10.3390/su12166322

Cited by 8 publications

(5 citation statements)

References 49 publications

(114 reference statements)

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“…Compensation significantly affects job satisfaction. This is in line with previous research reports (Cabanas et al, 2020;Saluy, Raharjo, 2021;Shen et al, 2017), which show that the alignment between the compensation system and the expectations of workers plays a role in increasing job satisfaction so that workers will feel calm at work.…”

Section: The Effect Of Compensation On Job Satisfactionsupporting

confidence: 92%

Employee performance analysis of Paul Bakery Restaurant in Jakarta during the COVID-19 pandemic by measuring leadership, motivation and compensation through job satisfaction

Budiono¹

2022

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The purpose of this study is to analyze the influence of leadership, compensation and motivation, by using job satisfaction as an intervening variable, on employee performance during a crisis in the context of a company in the restaurant service sector. A tiered linear regression with two models was used: Model 1 analyzed the influence of leadership, compensation and motivation on job satisfaction while Model 2 explored the impact of leadership, compensation, motivation and job satisfaction on performance. The results showed that leadership, compensation, and motivation, simultaneously and partially, had a significant effect on job satisfaction. While together they had a substantial impact on performance, but only partially on leadership and compensation do not affect performance. There is however an indirect effect of leadership and compensation variables on performance through job satisfaction. In comparison, the motivation variable does not affect either directly or indirectly

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Section: The Effect Of Compensation On Job Satisfactionsupporting

confidence: 92%

Employee performance analysis of Paul Bakery Restaurant in Jakarta during the COVID-19 pandemic by measuring leadership, motivation and compensation through job satisfaction

Budiono¹

2022

Tour

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“…When employees perceive PFP as information, their interest in the work itself increases, which is called "intrinsic motivation" in motivation research. Several studies confirmed that PFP enhances intrinsic motivation (Cabanas et al, 2020). Hackman and Oldham (1975) suggested that intrinsic motivation significantly influences employees' behaviors and attitudes.…”

Section: The Emerging Importance Of Cognitive Evaluation Theorizing I...mentioning

confidence: 92%

A cognitive evaluation and equity-based perspective of pay for performance on job performance: A meta-analysis and path model

Chen

Zhang²,

Zhou³

et al. 2023

Front. Psychol.

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Pay for performance, as one of the most important means of motivating employees, has attracted the attention of many scholars and managers. However, controversy has continued regarding whether it promotes or undermines job performance. Drawing on a meta-analysis of 108 independent samples (N = 71,438) from 100 articles, we found that pay for performance was positively related to job performance. That pay for performance had a more substantial positive effect on task performance than contextual performance in workplace settings. From the cognitive evaluation perspective, we found that pay for performance enhanced employees' task performance and contextual performance by enhancing intrinsic motivation and weakened task performance and contextual performance by increasing employee pressure. From the equity perspective, our results indicated that the relationship between pay for performance and task performance was partially mediated by employee perceptions of distributive justice and procedural justice, with distributive justice having a more substantial mediating effect than procedural justice. However, the relationship between pay for performance and contextual performance was only partially mediated by procedural justice. Further tests of moderating effects indicated that the varying impacts of pay for performance are contingent on measures of pay for performance and national culture. The findings contributed to understanding the complex mechanisms and boundary conditions of pay-for-performance's effects on job performance, which provided insights for organizations to maximize its positive effects.

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“…All returns employees receive due to their job are referred to as employee compensation (Dessler 2015;Cabanas et al 2020). The literature on self-determination theory (SDT) claims that compensation systems serve as significant external triggers (Ryan and Deci 2017;Tepliuk et al 2021).…”

Section: Compensation Systemmentioning

confidence: 99%

The Power of Compensation System (CS) on Employee Satisfaction (ES): The Mediating Role of Employee Motivation (EM)

et al. 2022

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The compensation system, employee motivation, and employee satisfaction have received much attention from academics for many years. Existing research, however, does not yet detail the mediation effect of employee motivation on the relationship between the entire compensation system and employee satisfaction. The study explores the influence of the compensation structure on employee satisfaction using employee motivation as mediation. This research embraced a quantitative design, positivism paradigm, deductive approach, and explanatory research. Cross-sectional data from 100 employees were drawn with a random sampling technique using a self-administered survey questionnaire. First, in sequence of analysis, descriptive statistics were conducted. After that, a reliability test was used to test internal consistency. Finally, a correlation test, direct effect, indirect effect, and total effect were used to test the hypotheses at the 0.05 level while analyzing the data. The findings show that the compensation system has a favorable impact on employee satisfaction by partially mediating motivation. Concurrently, this study establishes awareness intending to revise a robust compensation strategy so that employee morale, engagement will increase and turnover will reduce. The study outcomes will assist policymakers in improving the situation of the existing workforce in insurance companies and other financial companies in Bangladesh.

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Pay for Individual Performance: Aiding or Harming Sustainable Intrinsic Motivation?

Cited by 8 publications

References 49 publications

Employee performance analysis of Paul Bakery Restaurant in Jakarta during the COVID-19 pandemic by measuring leadership, motivation and compensation through job satisfaction

Employee performance analysis of Paul Bakery Restaurant in Jakarta during the COVID-19 pandemic by measuring leadership, motivation and compensation through job satisfaction

A cognitive evaluation and equity-based perspective of pay for performance on job performance: A meta-analysis and path model

The Power of Compensation System (CS) on Employee Satisfaction (ES): The Mediating Role of Employee Motivation (EM)

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