Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice

The present research examined the influences of pay for performance programs on employee performance in the Romanian context, by comparing a sample of employees in companies in which such programs are implemented to a sample of employees in organizations in which performance is not used as a criteri...

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Main Author: Uriesi Sebastian
Format: Article
Language:English
Published: Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house 2017-03-01
Series:Scientific Annals of Economics and Business
Subjects:
Online Access:http://www.degruyter.com/view/j/saeb.2017.64.issue-1/saeb-2017-0001/saeb-2017-0001.xml?format=INT
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author Uriesi Sebastian
author_facet Uriesi Sebastian
author_sort Uriesi Sebastian
collection DOAJ
description The present research examined the influences of pay for performance programs on employee performance in the Romanian context, by comparing a sample of employees in companies in which such programs are implemented to a sample of employees in organizations in which performance is not used as a criterion in deciding financial rewards. Results show that the work performances of the former, as evaluated by the direct supervisors of each employee, are significantly higher than those of the latter, and that this effect of performance pay is partly mediated by its positive effects on employee perceptions of distributive and procedural justice. Furthermore, results indicate that the individual – level financial incentive systems are more efficient in fostering work performance than the team – level performance pay programs in the Romanian employee sample, and that they also have stronger effects on the two dimensions of organizational justice.
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spelling doaj.art-0b137041c9ce454b9b66270771b864c42022-12-22T01:10:55ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652017-03-0164111810.1515/saeb-2017-0001saeb-2017-0001Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational JusticeUriesi Sebastian0Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iaşi, RomaniaThe present research examined the influences of pay for performance programs on employee performance in the Romanian context, by comparing a sample of employees in companies in which such programs are implemented to a sample of employees in organizations in which performance is not used as a criterion in deciding financial rewards. Results show that the work performances of the former, as evaluated by the direct supervisors of each employee, are significantly higher than those of the latter, and that this effect of performance pay is partly mediated by its positive effects on employee perceptions of distributive and procedural justice. Furthermore, results indicate that the individual – level financial incentive systems are more efficient in fostering work performance than the team – level performance pay programs in the Romanian employee sample, and that they also have stronger effects on the two dimensions of organizational justice.http://www.degruyter.com/view/j/saeb.2017.64.issue-1/saeb-2017-0001/saeb-2017-0001.xml?format=INTperformance paywork performanceorganizational justiceM52L25D63
spellingShingle Uriesi Sebastian
Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice
Scientific Annals of Economics and Business
performance pay
work performance
organizational justice
M52
L25
D63
title Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice
title_full Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice
title_fullStr Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice
title_full_unstemmed Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice
title_short Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice
title_sort efficiency of pay for performance programs in romanian companies and the mediating role of organizational justice
topic performance pay
work performance
organizational justice
M52
L25
D63
url http://www.degruyter.com/view/j/saeb.2017.64.issue-1/saeb-2017-0001/saeb-2017-0001.xml?format=INT
work_keys_str_mv AT uriesisebastian efficiencyofpayforperformanceprogramsinromaniancompaniesandthemediatingroleoforganizationaljustice