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Play for Pay: Effects of Inequity in a Pay-for-Performance Context

Joseph W. Harder
Administrative Science Quarterly
Vol. 37, No. 2, Special Issue: Process and Outcome: Perspectives on the Distribution of Rewards in Organizations (Jun., 1992), pp. 321-335
DOI: 10.2307/2393227
Stable URL: http://www.jstor.org/stable/2393227
Page Count: 15
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Play for Pay: Effects of Inequity in a Pay-for-Performance Context
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Abstract

This research explores the effects of an objectively determined, continuous measure of inequity on composite measures of individual performance in a pay-for-performance context, professional baseball and basketball. It was hypothesized that pay-for-performance contingencies would lessen the effects of individual underreward on individual performance. In addition, it was hypothesized that individual underreward would lead to less cooperative and more selfish behavior. Regression models of performance were run, controlling for prior career performance. The effects of the continuous measure of inequity on performance were greater for overrewarded individuals than for underrewarded individuals. Furthermore, underrewarded individuals behaved less cooperatively and more selfishly, while overrewarded individuals behaved more cooperatively.

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