Abstract
The reaction of a work group to a pay incentive plan is studied. An analysis of the employees’ attitudes reveals that they trust management, understand the plan, and see a close relationship between their pay and their performance. Based upon expectancy theory, it is hypothesised that because these conditions exist, the workers will respond directly to the economic payoff structure of the plan. In order to test this hypothesis, a mathematical model is developed to predict the productivity of the work group. The data show a high degree of fit between the model’s predictions and the actual productivity of the group. The implications of this for future research and for the design of incentive systems are discussed.
Originally published in Journal of Applied Psychology, 58 [2] (1973) 163–72. Reprinted by permission.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Atkinson J. W., An Introduction to Motivation, (Princeton, N.J.: Van Nostrand, 1964).
Blood M. R., ‘Work Values and Job Satisfaction’, Journal of Applied Psychology, 53 (1969) 256–9.
Coch L. and French J. R. P., Jr., ‘Overcoming Resistance to Change’, Human Relations, 1 (1948) 512–32.
Gurin P., Gurin G., Lao R. and Beattie M., ‘Internal-External Control is the Motivational Dynamics of Negro Youth’, Journal of Social Issues, 15 (3) (1969) 29–53.
Hackman J. R. and Lawler E. E., III, ‘Employee Reactions to Job Characteristics’, Journal of Applied Psychology Monograph, 55 (1971) 259–86.
Lawler E. E., III, Pay and Organizational Effectiveness: A Psychological View, (New York: McGraw-Hill, 1971).
Marrow A. J., Bowers D. G. and Seashore S. E., Management by Participation, (New York: Harper & Row, 1967).
Roethlisberger F. J. and Dickson W. J., Management and the Worker, (Cambridge, Mass.: Harvard University Press, 1939).
Rothe H. F., ‘Does Higher Pay Bring Higher Productivity’, Personnel, 37 (1960) 20–7.
Vroom V. H., Work and Motivation, (New York: Wiley, 1964).
Whyte W. F. (ed.), Money and Motivation: An Analysis of Incentives in Industry, (New York: Harper, 1955).
Editor information
Copyright information
© 1981 Palgrave Macmillan, a division of Macmillan Publishers Limited
About this chapter
Cite this chapter
Cammann, C., Lawler, E.E. (1981). Employee Reactions to a Pay Incentive Plan. In: Gruneberg, M.M., Oborne, D.J. (eds) Psychology and Industrial Productivity. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-04809-0_8
Download citation
DOI: https://doi.org/10.1007/978-1-349-04809-0_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-333-27074-5
Online ISBN: 978-1-349-04809-0
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)