The Positive and Negative Effects of Individual Pay for Performance on Work Performance:Theoretical Foundations,Key Factors,and Boundary Conditions
It is quite controversial in the academic community whether individual pay for performance can effectively improve work performance,which,for academics,hampers a comprehensive understanding of the functions of PFP,and for practitioners,limits its specific application.Based on this,this study aims to conduct a comprehensive analysis of the positive and negative effects of PFP on work performance.First,through systematically reviewing and summarizing relevant literature,the theories of motivation crowding and of organic integration are employed as the fundamental theory of integrating the two opposing perspectives(positive effect VS negative effect);and then,it analyzes the key factors—the characteristics of work tasks and PFP design—under which PFP has positive or negative effects on work performance;after this,what is concluded from individual characteristics and organizational management ones are the boundary conditions strengthening or weakening the positive effects of PFP on work performance.Finally,on the basis of the discussion above,future research should focus on the following three key aspects.
Pay for PerformanceWork PerformancePositive and Negative EffectsKey FactorsBoundary Conditions
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