The effect of variable pay system on individual performance: Longitudinal analysis of retailing sales
| Autor: | Ying-yao Huang, 黃瑛瑤 |
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| Rok vydání: | 2010 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 98 Managers are suffered from the high turnover rate in sales management. According to relative research results, pay systems have the most powerful impact on organizational performance among all the HR practices. Well-designed pay systems could attract and retain talent employees. They are also coupled with the effectiveness of performance evaluation, which stands for the aim of ensuring attaining organizational goals. Therefore, success or failure of an organization is significantly related to its pay system design. Because of its flexibility and responsiveness to organizational goals, variable pay possesses the ability to grant rewards linking employees to organizational success. From personnel economics perspective, monetary incentives have effects on output. However, a lack of data makes the above statement not corroborated. Based on a 60-month period data from a retailing company, this research conducts longitudinal analysis by fixed-effects regression model to empirically test the effects of variable pay on employees’ job performance. Results verify the effects of variable pay on productivity. Those who are with individual level of performance measure, reasonable goal-setting and equitable payout formula characteristics show the best effect on productivity. Implications for designing variable pay systems are discussed and future research suggestions are provided. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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