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An Investigation Into Pay Valence and Performance in a Pay-for-Performance Field Setting

Jeremy B. Fox, K. Dow Scott and Joan M. Donohue
Journal of Organizational Behavior
Vol. 14, No. 7 (Dec., 1993), pp. 687-693
Published by: Wiley
Stable URL: http://www.jstor.org/stable/2488230
Page Count: 7
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An Investigation Into Pay Valence and Performance in a Pay-for-Performance Field Setting
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Abstract

Inconsistent findings have been reported in the few studies investigating the relationship between the perceived value of pay and incentive performance. One hundred and seventy-eight female incentive employees with a nine-week, non-judgmental performance measure responded to a developed valence of pay scale. This measure used items assessing the perceived ability of pay to address employee needs. Three factor-scales were found within these items. Support for the hypothesized positive relationship between pay valence and incentive performance was found, dependent on which of the three scales was used. These findings provide initial insight into the means by which pay, with its ability to address different needs, might provide differential employee motivation and performance levels. This study and future research issues are discussed.

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