ERIC Number: ED168136
Record Type: RIE
Publication Date: 1975
Reference Count: N/A
The Pay-for-Performance Dilemma.
Meyer, Herbert H.
Organizational Dynamics, v3 n3 p39-50 Win 1975
The basis for most problems with merit pay plans is that the great majority of employees believe their own job performance is above average. Even a well-administered merit pay plan cannot give positive feedback to this majority. The likely consequence is that the employee's self-esteem is threatened. Often one copes with such a threat by demeaning the importance of the job or by derogating the source--that is, disparaging the boss or management in general. Merit pay forces employees to compete for rewards, thus increasing hostility and decreasing communication between employees. In addition, merit pay emphasizes the direct relationship between job performance and dollar rewards, thereby detracting from intrinsic motivation in the work itself. A system that would switch the emphasis to rewards for self-development and opportunities for greater responsibility appears to serve both individual and organizational goals in a more effective manner. (Author/JM)
Descriptors: Achievement, Competition, Employer Employee Relationship, Guides, Incentives, Merit Pay, Motivation, Organizational Theories, Organizations (Groups), Personnel Evaluation, Rewards, Self Esteem, Task Performance, Work Attitudes
AMACOM, Div. of American Management Associations, 135 West 50th Street, New York, New York 10020 ($6.00 for journal)
Publication Type: Guides - General; Journal Articles
Education Level: N/A
Authoring Institution: N/A