The differing effects of individual- and group-based pay for performance on employee satisfaction: the role of the perceived fairness of performance evaluations

2021 ◽  
pp. 1-19
Author(s):  
Kwang Bin Bae
2020 ◽  
pp. 074391562098472
Author(s):  
Lu Liu ◽  
Dinesh K. Gauri ◽  
Rupinder P. Jindal

Medicare uses a pay-for-performance program to reimburse hospitals. One of the key input measures in the performance formula is patient satisfaction with their hospital care. Physicians and hospitals, however, have raised concerns especially about questions related to patient satisfaction with pain management during hospitalization. They report feeling pressured to prescribe opioids to alleviate pain and boost satisfaction survey scores for higher reimbursements. This over-prescription of opioids has been cited as a cause of current opioid crisis in the US. Due to these concerns, Medicare stopped using pain management questions as inputs in its payment formula. We collected multi-year data from six diverse data sources, employed propensity score matching to obtain comparable groups, and estimated difference-in-difference models to show that, in fact, pain management was the only measure to improve in response to pay-for-performance system. No other input measure showed significant improvement. Thus, removing pain management from the formula may weaken the effectiveness of HVBP program at improving patient satisfaction, which is one of the key goals of the program. We suggest two divergent paths for Medicare to make the program more effective.


2014 ◽  
Vol 28 (6) ◽  
pp. 484-497 ◽  
Author(s):  
Bang Nguyen ◽  
Philipp “Phil” Klaus ◽  
Lyndon Simkin

Purpose – The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer loyalty intentions, and (b) investigate the moderating effects of trust in these relationships. The study explores how customizing offers to match customers’ individual needs and how treating customers differentially provoke unfairness perceptions among those not being considered most important. While the literature discusses unfairness perceptions of pricing, promotion, and service, less is known about unfairness in customization practices. Design/methodology/approach – Using a survey approach, 443 completed questionnaires we collected. Following validation of our item measures, a hierarchical linear regression analysis was conducted to test the conceptual model and hypothesized linkages between our constructs. Findings – The results demonstrate that customers’ negative perceptions of customization increase their unfairness perceptions. Unfairness perceptions drastically reduce customer loyalty intentions with trust acting as a significant moderator. Trust increases loyalty intentions even when unfairness perceptions are present. Our findings provide a foundation for understanding how firms may improve their perceived fairness. This increase in perceived fairness creates positive attributions, reduces negative customer experience perceptions and increases loyalty intentions. Originality/value – Key contribution is the development and validation of a conceptual model explaining the linkages between firm customization and unfairness perceptions, firm customization and customer loyalty intentions and the moderating role of trust between these relationships. This study extends the understanding of how customization practices impact unfairness perceptions and, subsequently, influence consumers’ perceptions, intentions and behavior.


2021 ◽  
Author(s):  
Anne Skorkjær Binderkrantz ◽  
Mette Bisgaard ◽  
Berit Lassesen

The role of gender in the interaction between citizens and public sector employees attracts increasing attention. Notably, gender effects have been described in performance evaluations across different contexts. With respect to student evaluations of teaching, a series of observational studies as well as experimental studies have found that women are evaluated lower than men. In this paper, we conduct two experiments in Denmark to test whether a similar gender bias is present in a national context that is generally considered among the most gender equal. Study 1 investigates differences in the evaluation of two similar presentations by teachers reported to be either male or female. Study 2 focuses on the evaluation of teaching material prepared by men and women respectively. The two studies arrive at similar conclusions: There is no gender bias in favor of men in the evaluations made by students. The paper discusses the implications of these findings.


2021 ◽  
Author(s):  
◽  
Monica Nicole Micek

<p>Internal Marketing, a long-debated concept amongst academics and practitioners, is suggested to be a competitive advantage to organisations that utilise its practices. Often dismissed as merely selling the marketing of a product or service to employees within an organisation, Internal Marketing encompasses a combination of the key elements of communication, training, and feedback in order to create motivated, customer-orientated employees. Through employees and managers working together towards a well communicated organisational cause of Internal Marketing, internal procedures can evolve to better service and satisfy customers.  Organisational restructures are an ongoing concern as technological advances, value-adding business process, and globalisation change the way that businesses run and operate. In order to save on costs of operations, employment, and office rental space, downsizing an organisation may initially present itself as a cost-saving practice. Often unconsidered are the front-line customer-facing employees and customers of an organisation. Employees may feel distraught and concerned about losing their job, or having to find a new job, which may affect customer service, and subsequently customers may face the brunt of the domino effect, either intentionally or unintentionally, due to employees’ emotional disconnection from the organisation.  This research is an exploratory study into Internal Marketing, specifically around an organisational restructure, to better understand its impact on employees and customers through different stages of a restructure. Through the use of online surveys, participants were asked to recall an organisational restructure they were involved in within the last five years. They were asked to report their perceptions of Internal Marketing, their own satisfaction with their job at the time, and their perceptions of Customer Satisfaction throughout different stages of the organisational restructure.  The analysis found that Internal Marketing does have a significant positive relationship with Employee Satisfaction both during and after an organisational restructure. Although no significant relationship was found between Employee Satisfaction and Customer Satisfaction at any stage of the restructure, there is a trend within the data suggesting that the relationship may be stronger before and after an organisational restructure.  Benefits and contribution of this research for academics include development of a conceptual model, as well as the benefits and effects of Internal Marketing, and extending the existing literature. For practitioners, benefits include insights into better understanding of the role of Internal Marketing. Specifically, the differences in perception of the practice between employees and managers, and why it is important to understand and address Employee Satisfaction and Customer Satisfaction during an organisational restructure.</p>


2018 ◽  
Vol 15 (4-1) ◽  
pp. 181-190
Author(s):  
Xiaoying Chen ◽  
Jasmine Yur-Austin

This study reviews the role of various corporate governance mechanisms to pay for performance in American technology firms. Compared to traditional business leaders, CEOs in technology firms possess stronger power for negotiating with shareholders; such power theoretically lowers the chance of interest conflicts between management and control but may increase CEOs’ wage rigidity during business downturns, especially in firms with poor corporate governance. We evaluate ownership structure; board composition; and the existence of independent compensation committees throughout the dot-com bubble and bubble-burst periods. We aim to examine during the business downturn period whether these CEOs cut their compensation effectively or exercise their negotiation power to protect their own benefit. Our empirical results provide strong evidence that given poor firm performance, CEOs with weak corporate governance negotiate higher cash-based pay rather than reduce their compensations. However, we find that venture capitalists play an important role in monitoring CEOs and revising compensation.


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