Pay for performance: What type of pay scheme is best for achieving business results?

• Main Author: DIEZ, Fermin Augusto
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: executive compensation; prospect theory; human resources; motivation; strategy implementation; pay for performance; Organizational Behavior and Theory; Organization Development; Work, Economy and Organizations
• Online Access: https://ink.library.smu.edu.sg/etd_coll_all/38; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1038&context=etd_coll_all
• Institution: Singapore Management University

Much has been written, for and against, about compensation as a driver of performance. Two main theoretical constructs deal with this subject: extrinsic theory, including agency theory, whereby money is a main motivator to performance, and intrinsic theory which proposes that money does not motivate...