Motivational effects of pay dispersion in pay for performance programs implemented in Romanian companies
The present study investigates the motivational effects in a sample of Romanian employees in private companies that implement pay for performance programs of one of the characteristics of these programs, namely pay dispersion, and on the potential mediating role of organizational justice in these ef...
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2016-07-01
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| Series: | Management şi Marketing |
| Subjects: | |
| Online Access: | http://www.degruyter.com/view/j/mmcks.2016.11.issue-2/mmcks-2016-0007/mmcks-2016-0007.xml?format=INT |
| _version_ | 1818529716859043840 |
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| author | Urieşi Sebastian |
| author_facet | Urieşi Sebastian |
| author_sort | Urieşi Sebastian |
| collection | DOAJ |
| description | The present study investigates the motivational effects in a sample of Romanian employees in private companies that implement pay for performance programs of one of the characteristics of these programs, namely pay dispersion, and on the potential mediating role of organizational justice in these effects. To this aim, we examined the relationships between the amounts of pay dispersion introduced by the respective financial incentive system, employee perceptions of distributive and procedural justice, work motivation, and base salary, respectively. The results of the data analysis, performed through structural equation modeling, support our hypotheses concerning the positive effect of performance – related pay dispersion on motivation and the mediating role of the two dimensions of organizational justice in this effect. Larger financial rewards allocated by the financial incentive system for high performers increase employee perceptions of distributive and procedural justice, which, in turn, foster work motivation. Base salary was also found to influence pay dispersion, as well as perceived distributive justice. |
| first_indexed | 2024-12-11T17:10:25Z |
| format | Article |
| id | doaj.art-f2342c5076f3474d9364f6a57c9a4e5f |
| institution | Directory Open Access Journal |
| issn | 1842-0206 |
| language | English |
| last_indexed | 2024-12-11T17:10:25Z |
| publishDate | 2016-07-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Management şi Marketing |
| spelling | doaj.art-f2342c5076f3474d9364f6a57c9a4e5f2022-12-22T00:57:33ZengSciendoManagement şi Marketing1842-02062016-07-0111243144810.1515/mmcks-2016-0007mmcks-2016-0007Motivational effects of pay dispersion in pay for performance programs implemented in Romanian companiesUrieşi Sebastian0Alexandru I. Cuza University, Iaşi, RomaniaThe present study investigates the motivational effects in a sample of Romanian employees in private companies that implement pay for performance programs of one of the characteristics of these programs, namely pay dispersion, and on the potential mediating role of organizational justice in these effects. To this aim, we examined the relationships between the amounts of pay dispersion introduced by the respective financial incentive system, employee perceptions of distributive and procedural justice, work motivation, and base salary, respectively. The results of the data analysis, performed through structural equation modeling, support our hypotheses concerning the positive effect of performance – related pay dispersion on motivation and the mediating role of the two dimensions of organizational justice in this effect. Larger financial rewards allocated by the financial incentive system for high performers increase employee perceptions of distributive and procedural justice, which, in turn, foster work motivation. Base salary was also found to influence pay dispersion, as well as perceived distributive justice.http://www.degruyter.com/view/j/mmcks.2016.11.issue-2/mmcks-2016-0007/mmcks-2016-0007.xml?format=INTperformance paywork motivationdistributive justiceprocedural justiceincentives |
| spellingShingle | Urieşi Sebastian Motivational effects of pay dispersion in pay for performance programs implemented in Romanian companies Management şi Marketing performance pay work motivation distributive justice procedural justice incentives |
| title | Motivational effects of pay dispersion in pay for performance programs implemented in Romanian companies |
| title_full | Motivational effects of pay dispersion in pay for performance programs implemented in Romanian companies |
| title_fullStr | Motivational effects of pay dispersion in pay for performance programs implemented in Romanian companies |
| title_full_unstemmed | Motivational effects of pay dispersion in pay for performance programs implemented in Romanian companies |
| title_short | Motivational effects of pay dispersion in pay for performance programs implemented in Romanian companies |
| title_sort | motivational effects of pay dispersion in pay for performance programs implemented in romanian companies |
| topic | performance pay work motivation distributive justice procedural justice incentives |
| url | http://www.degruyter.com/view/j/mmcks.2016.11.issue-2/mmcks-2016-0007/mmcks-2016-0007.xml?format=INT |
| work_keys_str_mv | AT uriesisebastian motivationaleffectsofpaydispersioninpayforperformanceprogramsimplementedinromaniancompanies |