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Group-based pay-for-performance plans and firm performance: The moderating role of empowerment practices
- Authors
- Kim, Hyondong; Sutton, Kyra L.; Gong, Yaping
- Issue Date
- Mar-2013
- Publisher
- SPRINGER
- Keywords
- Group-based pay-for-performance plan; Empowerment practice; Contingency perspective; South Korea
- Citation
- ASIA PACIFIC JOURNAL OF MANAGEMENT, v.30, no.1, pp 31 - 52
- Pages
- 22
- Indexed
- SSCI
SCOPUS
- Journal Title
- ASIA PACIFIC JOURNAL OF MANAGEMENT
- Volume
- 30
- Number
- 1
- Start Page
- 31
- End Page
- 52
- ISSN
- 0217-4561
1572-9958
- Abstract
- As the popularity of group-based pay-for-performance plans persists, compensation researchers are exploring the conditions under which these plans contribute to the financial performance of firms. Based on a sample of 1,933 employees from 415 companies in South Korea, we found that group-based pay-for-performance plans enhance both objective and subjective measures of firm performance. Furthermore, consistent with the contingency perspective of fit, we found that empowerment practices positively moderate the relationship between group-based pay-for-performance plans and firm performance. These findings suggest that empowerment can enhance the effectiveness of such pay plans. We discuss implications for research and practice.
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Related Researcher
- Kim, Hyon Dong
- Dongguk Business School (Department of Business Administration)