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Performance Contingent Pay and Autonomy: Implications for Facilitating Extra-Role Creativity

Author

Listed:
  • David Balkin

    (Leeds School of Business [Boulder] - University of Colorado [Boulder])

  • Patrice Roussel

    (RH - CRM - Centre de Recherche en Management - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - IAE - Institut d'Administration des Entreprises - Toulouse - CNRS - Centre National de la Recherche Scientifique)

  • Steve Werner

    (University of Houston)

Abstract

This paper applies self-determination theory and motivation crowding theory to identify specific conditions where performance contingent pay for in-role job performance can be used while at the same time preserving or enhancing perceived autonomy to facilitate extra-role creativity. We formulate theoretical propositions that identify several factors that positively moderate the relationship between performance contingent pay and autonomy so that perceived autonomy is increased rather than decreased. The moderating factors are (1) ex-post basis of pay, (2) generalized performance outcomes, (3) employee choice over amount and timing of pay, and (4) low intensity pay. Finally, we offer theoretical contributions for scholars and implications for managers of pay systems

Suggested Citation

  • David Balkin & Patrice Roussel & Steve Werner, 2015. "Performance Contingent Pay and Autonomy: Implications for Facilitating Extra-Role Creativity," Post-Print halshs-01233616, HAL.
    • Handle: RePEc:hal:journl:halshs-01233616
    DOI: 10.1016/j.hrmr.2015.07.001
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    Cited by:

    1. Abel, Martin & Burger, Rulof, 2022. "Choice over Payment Schemes and Worker Effort," IZA Discussion Papers 15769, Institute of Labor Economics (IZA).
    2. Yu Ding & Yijun Liu, 2022. "The Influence of High-Performance Work Systems on the Innovation Performance of Knowledge Workers," Sustainability, MDPI, vol. 14(22), pages 1-20, November.
    3. Mohamed Ali Hedhili & Sami Boudabbous, 2020. "Factor analysis of competence management practices: Case of Tunisian companies," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(3), pages 94-104, April.

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