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Legitimacy of team rewards: Analyzing legitimacy as a condition for the effectiveness of team incentive designs

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  • Aime, Federico
  • Meyer, Christopher J.
  • Humphrey, Stephen E.

Abstract

This article illustrates how the legitimacy of pay and evaluation processes in teams affect the effectiveness of team-based incentive designs in organizational work teams. We present a theoretical model of the development of legitimacy in team-based incentive designs and propose that the development of legitimacy for both pay dispersion in teams (i.e., difference in allocations of incentives among team members) and for the use of interdependent evaluations of performance promote team effectiveness. Our model introduces a new perspective to theorize about the conditions under which team rewards are an effective incentive design.

Suggested Citation

  • Aime, Federico & Meyer, Christopher J. & Humphrey, Stephen E., 2010. "Legitimacy of team rewards: Analyzing legitimacy as a condition for the effectiveness of team incentive designs," Journal of Business Research, Elsevier, vol. 63(1), pages 60-66, January.
    • Handle: RePEc:eee:jbrese:v:63:y:2010:i:1:p:60-66
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    References listed on IDEAS

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    Cited by:

    1. Humphrey, Stephen E. & Aime, Federico & Cushenbery, Lily & Hill, Aaron D. & Fairchild, Joshua, 2017. "Team conflict dynamics: Implications of a dyadic view of conflict for team performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 142(C), pages 58-70.
    2. Arndt, Aaron D. & Karande, Kiran & Landry, Timothy D., 2011. "An Examination of Frontline Cross-functional Integration during Retail Transactions," Journal of Retailing, Elsevier, vol. 87(2), pages 225-241.
    3. Ladley, Daniel & Wilkinson, Ian & Young, Louise, 2015. "The impact of individual versus group rewards on work group performance and cooperation: A computational social science approach," Journal of Business Research, Elsevier, vol. 68(11), pages 2412-2425.
    4. Wang, Liwen & Zhao, Jane Zheng & Zhou, Kevin Zheng, 2018. "How do incentives motivate absorptive capacity development? The mediating role of employee learning and relational contingencies," Journal of Business Research, Elsevier, vol. 85(C), pages 226-237.
    5. Alessandro Bucciol & Nicolai J Foss & Marco Piovesan, 2014. "Pay Dispersion and Performance in Teams," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-16, November.
    6. Schultz, Ainslie E. & Lamberton, Cait & Nielsen, Jesper H., 2017. "Does pulling together lead to falling apart? The self-regulatory consequences of cooperative orientations for the self-reliant," Journal of Business Research, Elsevier, vol. 81(C), pages 70-79.
    7. Ryan, James Christopher, 2016. "Old knowledge for new impacts: Equity theory and workforce nationalization," Journal of Business Research, Elsevier, vol. 69(5), pages 1587-1592.
    8. Hu, Miao & Qiu, Pingping & Wan, Fang & Stillman, Tyler, 2018. "Love or hate, depends on who's saying it: How legitimacy of brand rejection alters brand preferences," Journal of Business Research, Elsevier, vol. 90(C), pages 164-170.

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