PERFORMANCE AND JOB SATISFACTION Performance and job satisfaction

Impact Of Incentive Payments Or Bonus On Performance And Job Satisfaction

Introduction

Performance-based pay helps to increase the effort of workers. However, empirical evidence remains surprisingly low, even years after Prendergast (1999) notes that there has been little empirical evaluation of the provision of incentives for workers. This is surprising, given the increasing reliance of employers on merit pay.

Most of the available evidence in the literature of labor economics is the only aggregate results, for example, comparing the performance of companies and industries across different human resources practices.

On the other hand, psychological studies investigating the attitudes and job satisfaction compared with objective measures of effort and performance. Using absenteeism and overtime as indicators of the efforts of the workers are investigating the role of performance pay in the wealth and the most recent data. The longitudinal nature of the data allows us to carefully manage the issues of causality, and control the effects observed. Our analysis does not just look at managers, who have received much attention in the literature payperformance, but to all workers of a Swiss unit of our company. 3 By the use of objective results compared with subjective performance evaluations avoid measurement problems that arise when assessments are compared to workers through supervisors (see eg Prendergast 1999 or Schwab and Olson 1990 for a discussion) or that are inherent in the statements of employees on their attitudes, effort, and performance. It is clear that the objective indicators of individual behavior provide a more reliable picture of the efforts that the productivity measures of the company or industry applied in the literature.

Discussion

'Free rider' theory: rewards do not encourage team-based "social loafers"

Social psychologists have identified a number of group phenomena may be important for the instructor used in class groups. One of the consistent research findings is that people who work in groups to generate more ideas. Not only do people bring different ideas to groups, something about the exchange of ideas in groups generate more ideas. The level of "ideation" is 60 to 80 percent higher in groups than for individuals. The task is an activity that the group hopes to accomplish. When students participate in groups, which bring with them their individual identity, recognition, inclusion, status and understanding. This person makes a conscious decision to allow other group members do most of the work and then "walk through" in the group category. The free rider is a major problem in the use of groups in class activities. Because they know that their efforts are rewarded and individual follow-up, members can see more reward per unit of effort in "idle" when the group's awards are divided equally among the group, regardless of how much each contributes. It may be confused with apathy is really a reluctance to participate because it is not clear how the contribution will be received. In general, apathy - - real disinterest or other conduct pass by apathy - - can be overcome if they are identified and ...