Interactive Effects of Individual Pay for Performance and Profit Sharing on Employee Performance

2011 ◽  
Author(s):  
Joo Hun Han ◽  
Kathryn M. Bartol ◽  
Seongsu Kim
Keyword(s):  
Pay For Performance ◽  
Employee Performance ◽  
Profit Sharing ◽  
Interactive Effects

Pengaruh Budaya Organisasi terhadap Lingkungan Kerja pada PT  BRI Syariah Kantor Cabang S. Parman Medan

2018 ◽  
Vol 1 (2) ◽  
pp. 256-264
Author(s):  
Anjur Perkasa Alam ◽  
Asmawarna Sinaga ◽  
Ayu Liviana ◽  
Dewi Indriani
Keyword(s):  
Employee Performance ◽  
Employee Motivation ◽  
Profit Sharing ◽  
Standard Of Living ◽  
Material Incentive ◽  
Research Results ◽  
Target Set ◽  
Basic Salary ◽  
Work Responsibility

Based on the results of observations and discussions regarding Bonus Giving and Influence on Performance of employees of PT. BRI Syariah Branch S. Parman Medan is as follows:1. Policy of PT. BRI Syariah Branch S.Parman Medan in giving bonuses to employees is to provide the type of employee motivation at PT. BRI Syariah Branch S.Parman Medan by:a. Oral giving in the form of praise given by superiors.b. The giving of materials is by raising salaries, bonuses and incentives.c. Holding competition among employeesd. Provide adequate work facilitiese. Conducting periodic coaching by atassan directly by each boss.While the factors that lead to the giving of bonuses on the employees is the work of work, achievement in work, responsibility in work, words in work, cooperation between employees and companies and leadership in work.2. The form of bonus that is given to employees of PT. BRI Syariah Branch S. Parman Medan is an annual bonus, bonus achievement, bonus retention and profit sharing.3. The effect of bonuses on the performance of employees of PT. BRI Syariah Branch S. Parman Medan is to improve employee performance, improve its standard of living with the receipt of payments outside of basic salary and improve employee motivation so as to encourage them to perform better in work.Thus, the influence of bonuses or incentives on the performance of employees of PT. BRI Syariah Branch S. Parman Medan can be explained by several factors. Based on the research results, the highest score is found in the material incentive indicator (material). PT Bank BRI Syariah Medan provides incentives to employees if employees reach the target set by the company.

The Dawn of Paternal HR

2018 ◽  
Vol 7 (1) ◽  
pp. 27-44 ◽  
Author(s):  
Muhammad Abdullah ◽  
Salman Iqbal
Keyword(s):  
Organizational Performance ◽  
Social Exchange ◽  
Employee Performance ◽  
System Modeling ◽  
Interactive Effects ◽  
Employee Behavior ◽  
Dynamic Approach ◽  
Role Identification ◽  
Hr Practices ◽  
Behavior Outcomes

The purpose of this article is to explore and investigate the effects of paternal HR practices on the employee behavior outcomes. There is dearth of knowledge research on paternal HR practices in Pakistan, its effect on employee outcomes and organizational performance. The authors have applied a system dynamic approach to explore the interactive effects of paternal HR practices on employee behavior. The paternal HR practices effect the employee job quitting intentions. The paternal HR practices improve the employee loyalty and commitment towards the manager and organization. It induces selfless employee behavior, enhances leader identification, increases social exchange, and fosters the trust. Trust and loyalty bonds an employee in psychological relation with an organization and a manager, leading to employee commitment. The better role identification leads to improved employee performance. Nonetheless, the proposed system of paternal HR practices helps the organizations influence employee behavior strategically, which can help reduce employee turnover. The value of this article lies in the understanding gained about the interactive effects of paternal HR practices on employee resignation with the help of system modeling and learning from the simulation outcomes.

scholarly journals Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice

2017 ◽  
Vol 64 (1) ◽  
pp. 1-18
Author(s):  
Sebastian Uriesi
Keyword(s):  
Organizational Justice ◽  
Work Performance ◽  
Pay For Performance ◽  
Financial Incentive ◽  
Employee Performance ◽  
Performance Pay ◽  
Two Dimensions ◽  
Individual Level ◽  
Positive Effects ◽  
The Individual

Abstract The present research examined the influences of pay for performance programs on employee performance in the Romanian context, by comparing a sample of employees in companies in which such programs are implemented to a sample of employees in organizations in which performance is not used as a criterion in deciding financial rewards. Results show that the work performances of the former, as evaluated by the direct supervisors of each employee, are significantly higher than those of the latter, and that this effect of performance pay is partly mediated by its positive effects on employee perceptions of distributive and procedural justice. Furthermore, results indicate that the individual – level financial incentive systems are more efficient in fostering work performance than the team – level performance pay programs in the Romanian employee sample, and that they also have stronger effects on the two dimensions of organizational justice.

The Dawn of Paternal HR

2020 ◽  
pp. 217-237
Author(s):  
Muhammad Abdullah ◽  
Salman Iqbal
Keyword(s):  
Organizational Performance ◽  
Social Exchange ◽  
Employee Performance ◽  
System Modeling ◽  
System Dynamic ◽  
Interactive Effects ◽  
Employee Behavior ◽  
Role Identification ◽  
Hr Practices ◽  
Behavior Outcomes

The purpose of this article is to explore and investigate the effects of paternal HR practices on the employee behavior outcomes. There is dearth of knowledge research on paternal HR practices in Pakistan, its effect on employee outcomes and organizational performance. The authors have applied a system dynamic approach to explore the interactive effects of paternal HR practices on employee behavior. The paternal HR practices effect the employee job quitting intentions. The paternal HR practices improve the employee loyalty and commitment towards the manager and organization. It induces selfless employee behavior, enhances leader identification, increases social exchange, and fosters the trust. Trust and loyalty bonds an employee in psychological relation with an organization and a manager, leading to employee commitment. The better role identification leads to improved employee performance. Nonetheless, the proposed system of paternal HR practices helps the organizations influence employee behavior strategically, which can help reduce employee turnover. The value of this article lies in the understanding gained about the interactive effects of paternal HR practices on employee resignation with the help of system modeling and learning from the simulation outcomes.

scholarly journals An Historical Perspective of Reward Systems: Lessons Learned from the Scientific Management Era

2014 ◽  
Vol 4 (4) ◽  
pp. 127 ◽  
Author(s):  
Helene L. Caudill ◽  
Constance D. Porter
Keyword(s):  
Historical Perspective ◽  
Pay For Performance ◽  
Reward System ◽  
Profit Sharing ◽  
Lessons Learned ◽  
Scientific Management ◽  
Reward Systems ◽  
Gain Sharing ◽  
Knowledge Based

This paper reveals how similar the reward systems prevalent during the scientific management era are to the rewards systems in use today. Systems popular today, such as profit sharing, gain sharing, skill/knowledge-based pay, merit-based pay/pay for performance, and variable-based pay, were also advocated during the reign of scientific management. The ideas expressed by several key scientific management contributors, including Frederick W. Taylor, Henry L. Gantt, Harrington Emerson, and Frank B and Lillian M. Gilbreth, are detailed. These ideas are compared and contrasted with existing reward systems and their underlying premises.  In addition, the lessons learned from the scientific management era as they relate to reward system philosophies of today are presented.

Gainsharing in Zebulon: What Do Workers Want?

1998 ◽  
Vol 27 (1) ◽  
pp. 117-131 ◽  
Author(s):  
Kevin R. Patton ◽  
Dennis M. Daley
Keyword(s):  
Pay For Performance ◽  
Reward System ◽  
Profit Sharing ◽  
Team Work ◽  
Participatory Management ◽  
Total Quality ◽  
Public Sector Organizations ◽  
Attitudes And Perceptions ◽  
System 2 ◽  
Individual Actor

Gainsharing, an instrument for implementing pay for performance, is a synthesis of participatory management and profit sharing.1 With increased interest in both pay-for-performance and total quality management (TQM), gainsharing programs have attracted the attention of public sector organizations. Gainsharing is a means for encouraging and motivating employees through extrinsic expectancy rewards within a group or organizational framework. It combines TQM's emphasis on the advantages derived from team work (and away from the distractions of individual competition) with the motivational effect of a strong individual reward system.2 This study examines employees' attitudes and perceptions about one local government's gainsharing plan. The employees' perceived ability to affect the savings on which the gainsharing award is based, their influence over the components included in the gainsharing calculations, control over the criteria used in determining individual eligibility for a gainsharing award and an employee ranking of individual actor influence on the gainsharing plan are measured.

scholarly journals THE PREVALENCE OF PERFORMANCE-RELATED PAY: A 23-COUNTRY EXAMINATION

2020 ◽  
Vol 4 (2) ◽  
pp. 111-128
Author(s):  
Fulya AYDINLI KULAK ◽  
Sevgi ELMAS ATAY
Keyword(s):  
Organizational Performance ◽  
Pay For Performance ◽  
Profit Sharing ◽  
Comparable Data ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
Variable Pay ◽  
Country Clusters

This study intends to determine the current situation regarding the prevalence of pay for performance systems established for managers. Examining performance-related pay, we focus on individual, team and organizational performance and explore how widespread several pay components are in 23 countries. The research consists of the firm-level data of 5217 large companies from 23 countries from the Cranfield Network on Comparative Human Resource Management database. The data has been presented descriptively via frequencies and percentages and then analyzed via cluster analysis. In this way, diverging country clusters have been determined regarding the prevalence of pay for performance. Findings show that individual bonus is the most frequently used variable pay component provided to managers in general. Following that, paying for organizational performance is highly prevalent, whereas team-based bonuses are rarely used as a whole. On the other hand, long term incentives are rarely used except profit sharing. The results are descriptive in nature. This study addresses how widespread performance-related pay in various countries. Evidence regarding the use and prevalence of pay for performance systems across countries is quite limited. So this research, reflecting the current scene regarding variable pay in various countries, contributes to current literature by presenting recent comparable data.

scholarly journals Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice

2017 ◽  
Vol 64 (1) ◽  
pp. 1-18
Author(s):  
Sebastian Uriesi
Keyword(s):  
Organizational Justice ◽  
Work Performance ◽  
Pay For Performance ◽  
Financial Incentive ◽  
Employee Performance ◽  
Performance Pay ◽  
Two Dimensions ◽  
Individual Level ◽  
Positive Effects ◽  
The Individual

Abstract The present research examined the influences of pay for performance programs on employee performance in the Romanian context, by comparing a sample of employees in companies in which such programs are implemented to a sample of employees in organizations in which performance is not used as a criterion in deciding financial rewards. Results show that the work performances of the former, as evaluated by the direct supervisors of each employee, are significantly higher than those of the latter, and that this effect of performance pay is partly mediated by its positive effects on employee perceptions of distributive and procedural justice. Furthermore, results indicate that the individual - level financial incentive systems are more efficient in fostering work performance than the team - level performance pay programs in the Romanian employee sample, and that they also have stronger effects on the two dimensions of organizational justice.

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