IDEAS home Printed from https://ideas.repec.org/a/aic/saebjn/v64y2017i1p1-18n55.html
   My bibliography  Save this article

Efficiency Of Pay For Performance Programs In Romanian Companies And The Mediating Role Of Organizational Justice

Author

Listed:
  • Sebastian URIESI

Abstract

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. JEL Codes - M52, L25, D63

Suggested Citation

  • Sebastian URIESI, 2017. "Efficiency Of Pay For Performance Programs In Romanian Companies And The Mediating Role Of Organizational Justice," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 64(1), pages 1-18, March.
    • Handle: RePEc:aic:saebjn:v:64:y:2017:i:1:p:1-18:n:55
    as

    Download full text from publisher

    File URL: http://saeb.feaa.uaic.ro/index.php/saeb/article/view/1044
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Origo, Federica, 2009. "Flexible pay, firm performance and the role of unions. New evidence from Italy," Labour Economics, Elsevier, vol. 16(1), pages 64-78, January.
    2. Cohen-Charash, Yochi & Spector, Paul E., 2001. "The Role of Justice in Organizations: A Meta-Analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 278-321, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel-Florin Dä‚Niloaia & Maria Viorica Bedrule Grigoruèšä‚, 2022. "The Expectations Of Graduates From Employers In The North-East Romania Region," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 30, pages 79-90, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chenot, David & Boutakidis, Ioakim & Benton, Amy D., 2014. "Equity and fairness perceptions in the child welfare workforce," Children and Youth Services Review, Elsevier, vol. 44(C), pages 400-406.
    2. Visschers, Vivianne H.M. & Siegrist, Michael, 2012. "Fair play in energy policy decisions: Procedural fairness, outcome fairness and acceptance of the decision to rebuild nuclear power plants," Energy Policy, Elsevier, vol. 46(C), pages 292-300.
    3. Amy R. Ward & Mor Armony, 2013. "Blind Fair Routing in Large-Scale Service Systems with Heterogeneous Customers and Servers," Operations Research, INFORMS, vol. 61(1), pages 228-243, February.
    4. Amar Fall & Fatéma Safy-Godineau & David Carassus, 2018. "Perceptions de justice organisationnelle dans les collectivités locales : quels impacts sur le bien-être psychologique au travail et sur l’intention de quitter des agents ?," Post-Print hal-02142237, HAL.
    5. Thuy-Van Tran & Sinikka Lepistö & Janne Järvinen, 2021. "The relationship between subjectivity in managerial performance evaluation and the three dimensions of justice perception," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(3), pages 369-399, September.
    6. Alpenberg, Jan & Paul Scarbrough, D., 2018. "Trust and control in changing production environments," Journal of Business Research, Elsevier, vol. 88(C), pages 527-534.
    7. Dodgson, Mary Kate & Agoglia, Christopher P. & Bennett, G. Bradley, 2021. "The influence of relationship partners on client managers’ negotiation positions," Accounting, Organizations and Society, Elsevier, vol. 92(C).
    8. Pujol-Cols, Lucas J. & Lazzaro-Salazar, Mariana, 2018. "Psychosocial risks and job satisfaction in argentinian scholars: exploring the moderating role of work engagement," Nülan. Deposited Documents 2966, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    9. Anja Deelen & Marloes de Graaf-Zijl & Wiljan van den Berge, 2018. "Labour market effects of job displacement for prime-age and older workers," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    10. Stephanie Hastings & Joan Finegan, 2011. "The Role of Ethical Ideology in Reactions to Injustice," Journal of Business Ethics, Springer, vol. 100(4), pages 689-703, June.
    11. Hakan Yalçın & Yeliz Yalçın, 2022. "A Meta Analysis of the Relationship between Organizational Justice and Job Satisfaction: The Case of Turkey," Istanbul Business Research, Istanbul University Business School, vol. 51(2), pages 417-432, November.
    12. Turel, Ofir & Connelly, Catherine E., 2013. "Too busy to help: Antecedents and outcomes of interactional justice in web-based service encounters," International Journal of Information Management, Elsevier, vol. 33(4), pages 674-683.
    13. Liebig, Stefan & Schupp, Jürgen, 2008. "Leistungs- oder Bedarfsgerechtigkeit? Über einen normativen Zielkonflikt des Wohlfahrtsstaats und seiner Bedeutung für die Bewertung des eigenen Erwerbseinkommens," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 59(1), pages 7-30.
    14. van Dijke, Marius & Wildschut, Tim & Leunissen, Joost M. & Sedikides, Constantine, 2015. "Nostalgia buffers the negative impact of low procedural justice on cooperation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 127(C), pages 15-29.
    15. Tae-Soo Ha & Kuk-Kyoung Moon, 2023. "Distributive Justice, Goal Clarity, and Organizational Citizenship Behavior: The Moderating Role of Transactional and Transformational Leadership," Sustainability, MDPI, vol. 15(9), pages 1-20, April.
    16. Lude, Maximilian & Prügl, Reinhard, 2021. "Experimental studies in family business research," Journal of Family Business Strategy, Elsevier, vol. 12(1).
    17. Leong Weng, Lee & Muhammad Madi bin, Abdullah, 2019. "Organizational Justice and Employee Deviance among Emergency Services Personnel in Malaysia," Journal of Contemporary Research in Business, Economics and Finance, Michael Laurence, vol. 1(4), pages 62-73.
    18. Suk-Kyu Kim & Yunduk Jeong, 2021. "Developing the Healthy and Competitive Organization in the Sports Environment: Focused on the Relationships between Organizational Justice, Empowerment and Job Performance," IJERPH, MDPI, vol. 18(17), pages 1-15, August.
    19. Ayesha Shahid & Qasim Ali Nisar & Muhammad Azeem & Waseem Ul Hameed & Muhammad Sajjad Hussain, 2018. "Moderating Role of Organizational Justice between Emotional Exhaustion and Job-Related Outcomes," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(2), pages :205-220, June.
    20. Gur, Yonatan & Iancu, Dan & Warnes, Xavier, 2020. "Value Loss in Allocation Systems with Provider Guarantees," Research Papers 3813, Stanford University, Graduate School of Business.

    More about this item

    Keywords

    performance pay; work performance; organizational justice;
    All these keywords.

    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aic:saebjn:v:64:y:2017:i:1:p:1-18:n:55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sireteanu Napoleon-Alexandru (email available below). General contact details of provider: https://edirc.repec.org/data/feaicro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.