Tightening up the Performance-Pay Linkage: Roles of Contingent Reward Leadership and Profit-Sharing in the Cross-Level Influence of Individual Pay-for-Performance

• 成果类型: Article
• 署名作者: Han, Joo Hun; Bartol, Kathryn M.; Kim, Seongsu
• 署名单位: Rutgers University System; Rutgers University New Brunswick; University System of Maryland; University of Maryland College Park; Seoul National University (SNU)
• 刊物名称: JOURNAL OF APPLIED PSYCHOLOGY
• ISSN/ISSBN: 0021-9010
• DOI: 10.1037/a0038282
• 发表日期: 2015
• 页码: 417-430
• 关键词: PFP; contingent reward leadership; profit-sharing; performance-reward expectancy; Job performance

摘要

Drawing upon line-of-sight (Lawler, 1990, 2000; Murphy, 1999) as a unifying concept, we examine the cross-level influence of organizational use of individual pay-for-performance (PFP), theorizing that its impact on individual employees' performance-reward expectancy is boosted by the moderating effects of immediate group managers' contingent reward leadership and organizational use of profit-sharing. Performance-reward expectancy is then expected to mediate the interactive effects of individual PFP with contingent reward leadership and profit-sharing on employee job performance. Analyses of cross-organizational and cross-level data from 912 employees in 194 workgroups from 45 companies reveal that organizations' individual PFP was positively related to employees' performance-reward expectancy, which was strengthened when it was accompanied by higher levels of contingent reward leadership and profit-sharing. Also, performance-reward expectancy significantly transmitted the effects of individual PFP onto job performance under higher levels of contingent reward leadership and profit-sharing, thus delineating cross-level mediating and moderating processes by which organizations' individual PFP is linked to important individual-level employee outcomes. Several theoretical and practical implications are discussed.