Research on the relationship between pay for individual performance (PFIP) and work engagement (WE) is limited. The purpose of this paper is to present a model outlining a…
Abstract
Purpose
Research on the relationship between pay for individual performance (PFIP) and work engagement (WE) is limited. The purpose of this paper is to present a model outlining a threefold association between PFIP and WE: a direct association, an indirect association via pay satisfaction and a joint indirect association via pay level and pay satisfaction.
Design/methodology/approach
Structural equation modeling and bootstrapping procedures were used to test hypotheses with regard to these associations based on data obtained from two independent studies: the author’s own research project, and the European Work Conditions Survey 2015.
Findings
In both studies, the author found the hypothesized direct association between PFIP and WE; indirect association between PFIP and WE via pay satisfaction; and a joint indirect association between PFIP and WE via pay level and pay satisfaction.
Research limitations/implications
Given its limited cross-sectional design, future longitudinal research in this area is needed to test the model of relations presented in this paper.
Practical implications
The association between PFIP and WE is weak, and partially mediated by pay satisfaction; thus, it seems that to promote WE, it is not solely sufficient to introduce PFIP into remuneration systems, but that, in addition, PFIP should be aligned with employee pay expectations.
Originality/value
This study contributes to the career development literature by proposing and initially testing a model describing the three ways PFIP may be related to WE, one of the most crucial factors in achieving career success.
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With pay transparency (PT) as an emerging trend in organizations around the world and the European Union promoting open pay regulations, PT is of increasing interest to…
Abstract
Purpose
With pay transparency (PT) as an emerging trend in organizations around the world and the European Union promoting open pay regulations, PT is of increasing interest to scientists, managers and policymakers. However, it is still unclear what people think about PT and what theoretical perspectives might explain people's views on transparent pay. Therefore, the purpose of this paper is to explore and systematize opinions about PT and to propose theoretical frameworks to understand different reactions to it.
Design/methodology/approach
Qualitative reflexive thematic analysis of the Internet debate that emerged in Poland in 2019 in response to the proposition of new law regulations aimed to improve PT by introducing obligatory pay ranges in job offers.
Findings
The author's analysis revealed a set of 41 specific and often opposite opinions about PT, which allow for the systematization of hopes and concerns related to PT around the 7 favorable and 6 unfavorable higher-order themes.
Social implications
The author's results might inform policymakers and managers about the possible risks and benefits of PT implementation. Revealed opposite opinions about PT raise awareness that PT policies, while solving some social problems, might simultaneously create others.
Originality/value
The author provides new insights into opinions that people hold about transparent pay based on real-world data. The author suggests theoretical perspectives for understanding and predicting reactions to PT, such as Hobfoll's Conservation of Resources Theory and Adam`s Equity Theory. Based on this, the authors propose that opposite opinions about PT might be explained by (a) perceived pay dispersion fairness and (b) perceived PT costs-benefits ratio.
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Despite evidence showing that cognitive biases – the systematic errors made by humans during cognitive processing, are prevalent among decision-makers, there is a lack of…
Abstract
Purpose
Despite evidence showing that cognitive biases – the systematic errors made by humans during cognitive processing, are prevalent among decision-makers, there is a lack of theoretical models providing insight into how these limitations of human mind might affect decisions made during performance management. This study aims to fill this gap and contribute to performance management scholarship by proposing a conceptual framework broadening our understanding of the role of cognitive biases in performance improvements practices and by highlighting remedies for cognitive biases.
Design/methodology/approach
Using benchmarking as an example, the authors integrate the knowledge from performance management and cognitive psychology literature. Examples of cognitive biases possible during benchmarking are used to illustrate how the limitations of human mind might have a critical role in performance management.
Findings
The cognitive biases might diminish the positive effect of performance improvement practice on organizational performance. As there is a prevalence of cognitive biases coupled with the inability of individuals to recognize and face them, the remedy for cognitive biases should be sought not at an individual but rather on an organizational level, in creating organizational cognitive biases policy (CBP).
Originality/value
The presented model provides new insights into the role of cognitive biases in performance management and allows seeing CBP as a safeguard against the effects of cognitive biases on performance. By referring to cognitive biases and CBP, our model also helps to understand why the same performance improvement practices might incite different opinions among decision-makers.
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Work engagement is among the most influential constructs in human resource management, but work engagement's current understanding overlooks what employees consider as engagement…
Abstract
Purpose
Work engagement is among the most influential constructs in human resource management, but work engagement's current understanding overlooks what employees consider as engagement. The author aims to advance the human resources theory and practice by discussing the need for understanding engagement from the employee point of view, and the author explores the properties of a self-anchoring work engagement scale – the measure capturing the personal perspective on work engagement.
Design/methodology/approach
The author has presented a conceptual discussion providing a rationale for capturing employee personal perspective on work engagement as supplementary to multi-item measures capturing researcher perspective. Based on empirical evidence, the author tests convergent and discriminant validity of self-anchoring work engagement in relation to job resources, job demands and burnout; the author confronts the nomological network of self-anchoring scale with previous work engagement meta-analysis.
Findings
The obtained results provided preliminary evidence supporting convergent and discriminant validity of self-anchoring work engagement. The analysis of the nomological network of self-anchoring work engagement in comparison to the previous meta-analysis revealed that self-anchoring work engagement might be more strongly related to challenging job demands than the multi-item researcher perspective work engagement.
Research limitations/implications
Practical implications
Social implications
Originality/value
The author's findings provide a modicum of evidence that asking employees about self-assessment of employees' work engagement on a 0–10 scale provides researchers with access to a freely available measurement method of the personal perception on work engagement.
Contribution to impact
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This conceptual paper aims to propose the evidence-based benchmarking model that bridges standard benchmarking practices with evidence-based management (EBMgt) principles and…
Abstract
Purpose
This conceptual paper aims to propose the evidence-based benchmarking model that bridges standard benchmarking practices with evidence-based management (EBMgt) principles and lessens tensions between two opposite views of benchmarking as a useful management tool vs a management hype and fashion.
Design/methodology/approach
This conceptual paper is based on the critical reasoning, analysis and integration of so far largely separated research fields of benchmarking and EBMgt. The author employs a method of conceptual model building to identify connections between standard benchmarking model and EBMgt practices and to explain how a sequence of benchmarking events supplemented by EBMgt principles might lead to more reliable managerial decision-making.
Findings
The author argues that although there are no common benchmarking procedures, it is possible to identify a standard benchmarking model that resonates in most contemporary benchmarking procedures and consists of four main phases: plan, do, check and act (PDCA). The author integrated this standard model with EBMgt practices of searching for evidence in four sources of information and a six-step critical thinking process to put forward the model of evidence-based benchmarking.
Originality/value
The proposed model is a novel, comprehensive framework that puts together so far incompatible practices of benchmarking and EBMgt. The model clears up existing conceptual confusions around “casual” benchmarking and advances contemporary understanding of benchmarking practices. The model of evidence-based benchmarking might act as a practical, heuristic tool improving the quality of the managerial decisions and thus positively influencing the bottom line of business performance.