Authors: Vijfeijken, Harm van; Kleingeld, Ad; Tuijl, Harrie van; Algera, Jen A.; Thierry, Henk

Source: Personnel Review, Volume 35, Number 1, 2006 , pp. 98-117(20)

Publisher: Emerald Group Publishing Limited

Abstract:

<B>Purpose</B> - To evaluate a proposed prescriptive model for the design of effective combinations of performance goals and pay-for-performance plans for the performance management of teams. <B>Design/methodology/approach</B> - The idea underlying the model - in which task, goal, and reward interdependence and their fit play a dominant role - is that a pay-for-performance plan should support the team goals and the goals of individual team members as well as support the way in which team members need to cooperate. To obtain a first notion on the model's validity, it was applied to evaluate a pay-for-performance plan for management teams at a large IT company. This evaluation consisted of an in-depth study of three management teams, using a case study methodology. <B>Findings</B> - Combinations of fit among type of team, performance goals, and pay-for-performance plan (established by a fit between the interdependence constructs and/or by an overlap in the content of the goal and pay indicators) are more effective than combinations of misfit. <B>Research limitations/implications</B> - The case study was limited to intra-team interdependence relationships and did allow for a analysis of the separate effects of a fit between the interdependence constructs versus content fit. <B>Practical implications</B> - This study shows that pay-for-performance plans should not be designed in isolation, but rather in alignment with performance goals and existing task interdependencies. <B>Originality/value</B> - This is the first study to investigate the three inter-dependence constructs in conjunction in a field setting.

Keywords: Performance measures; Performance-related pay; Team management; Team performance

Document Type: Research article

DOI: http://dx.doi.org/10.1108/00483480610636812

Publication date: 2006-01-01

Related content

• In this: publication
• By this: publisher
• In this Subject: Business
• By this author: Vijfeijken, Harm van ;  Kleingeld, Ad ;  Tuijl, Harrie van ;  Algera, Jen A. ;  Thierry, Henk

Website © Publishing Technology. Article copyright remains with the publisher, society or author(s) as specified within the article.

• Terms and conditions
• Privacy policy
• Information for advertisers