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All main topics / BWL / Personalwirtschaft / Management II
How are pay for performance and motivation correlated?
• Elements which should be included in PfP schemes: innovation,
independent actions, contributions to team performance etc.
• Results of empirical analyses:
- Overall no correlation between PfP and company performance
- Reverse causality possible: company performance results in incentives
- PfP increases motivation only for simple, well measurable tasks
- Badly designed PfP systems can have negative effects:
o With “multiple tasks” concentration on tasks that lead to monetary
o Short-term orientation
o Imbalance of exploration and exploitation
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Flashcard info:
Author: Egregius
Main topic: BWL
Topic: Personalwirtschaft
School / Univ.: Universität Mannheim
Published: 11.03.2010




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