The Diffusion of Pay for Performance across Occupations

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. In this paper the differences in the incidence of pay for performance plans between occupations in a sample of Spanish manufacturing establishments are analyzed. Our results show that there are significant differences between occupations in the incidence of individual, group and firm or plant pay for performance plans. The roles of establishment size, multinational ownership and the human resources management department in the incidence of pay for performance plans and their variability of use across occupations within the same firm are also studied. These factors are found to correlate to a greater use of pay for performance and, in most cases, this effect is homogenous across occupations.JEL Classification: M52

The effect of culture on the curvilinear relationship between performance and turnover.

“…Further, international research has found that human resource practices that threaten or support those needs-thus creating the pressures leading to the curvilinear performance-turnover relationship-exist in a wide range of countries. Pay-for performance systems, which reward the top and penalize the bottom, have been studied in culturally divergent countries, such as China (Buck, Liu, & Skovoroda, 2008;Du & Choi, 2010), India (Kingdon & Teal, 2007), Italy (Origo, 2009), Japan (Beatty, McCune, & Beatty, 1988;Hatvany & Pucik, 1981), Rwanda (Kalk, Paul, & Grabosch, 2010), and Spain (Bayo-Moriones, Galdon-Sanchez, & Martinez-de-Morentin, 2010). The spread of U.S.-based multinational corporations has also brought pay-for-performance norms around the world, as at the corporation studied by DeVoe and Iyengar (2004) that used the system in Argentina, Brazil, Mexico, Philippines, Taiwan, and the United States.…”

The human resource architecture model: A twenty-year review and future research directions

“…Among studies which substantively cited any of the three articles of interest, the number of those taking a systematic view of all four quadrants (N ¼ 93) is higher than the number of those focusing on an individual quadrant (N ¼ 45). This suggests that researchers are more Beatty et al, 2003Bayo-Moriones et al, 2013Gelens et al, 2013Nieves & Quintana, 2018Lepak & Snell, 2002 Gonz alez & Verano-Tacorante, 2004De Vos & Dries, 2013McDonnell et al, 2016Schmidt, Pohler, et al, 2018Purcell et al, 2004Kulkarni & Ramamoorthy, 2005Kang et al, 2007Bryant & Allen, 2009Zhou et al, 2012 2. Individual Quadrant of the HR Architecture 2.1 Q1: for HC with High Uniqueness and High Value 9 1 0 1 2 L opez-Cabrales et al, Nijs et al, 2014Chuang et al, 2016Lepak et al, 2007Boon & Kalshoven, 2014Tlaiss et al, 2017Nesheim et al, 2007 Way et al, 2015…”

Performance Appraisal and Innovative Behavior in the Digital Era

“…Regarding the size, the most part of respondents (about 70%) work in companies with more than 250 employees. This is remarkable since literature has identified the large size of the business as a key determinant of the decision to adopt complex HRM practices, including performance appraisal (Bayo-Moriones et al, 2013) as well as of the decision to embrace digital transformation (McKinsey Global Institute, 2016).…”