ERIC Number: EJ401976
Record Type: CIJE
Publication Date: 1990
Reference Count: 0
Merit Pay Practices: Implications for Pay-Performance Relationships.
Schwab, Donald P.; Olson, Craig A.
Industrial and Labor Relations Review, v43 n3 spec iss p237S-55S Feb 1990
A Monte Carlo simulation was used to examine pay-performance relationships. Conventional merit systems achieved a better link between pay and performance than bonus systems, because merit systems benefit from consistency of performance over time. Even very substantial errors in measurement of performance have only a modest effect on pay-performance relationships. (SK)
Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Authoring Institution: N/A
Note: Paper presented at the symposium, "Do Compensation Policies Matter?" (Ithaca, NY, May 23-25, 1989).