EXPRESS: Variable Compensation and Salesperson Health

2021 ◽  
pp. 002224292199319
Author(s):  
Johannes Habel ◽  
Sascha Alavi ◽  
Kim Linsenmayer

Positive effects of incentives on salespeople’s motivation, effort, and performance are well-established in literature. This article takes a novel look at their influence on salespeople’s health. The results of four empirical studies, including more than 1,400 salespeople, suggest that an increasing variable compensation share (i.e., greater pay-for-performance component in salespeople’s compensation plans) increases salespeople’s stress, resulting in emotional exhaustion and more sick days. These outcomes are more likely for salespeople with lower personal ability and fewer social resources. The harmful effects of the variable compensation share on salespeople’s health reduce the positive effects of this incentive on sales performance. To practice better marketing for a better world, if variable compensation is used, the authors recommend that managers screen new hires for job-related resources and help their existing staff build such resources. In addition, companies may personalize incentive schemes and sensitize managers to the stress-inducing effects of variable compensation shares.

2020 ◽  
Vol 12 (18) ◽  
pp. 7414
Author(s):  
Elena Cizmaș ◽  
Emőke-Szidónia Feder ◽  
Mădălina-Dumitrița Maticiuc ◽  
Silvia Vlad-Anghel

This paper examines the effects of management functions on the performance of diverse teams working on projects in the Information Technology (IT) industry, as well as the impact of their performance on organizational sustainable performance. Grounded on organizational management and work team management specific empirical studies and literature, we clarified the content of management functions in the framework of teamwork and acknowledged manners to express the performance of teams distinguished through diversity, as well the most relevant positive effects of team results on organizational performance. On the above basis, we built the online questionnaire. The study involved 189 respondents, who work either in Romania or in the Czech Republic on IT field specific projects. Empirical results show that, individually, some management functions are connected with co-workers’ and teams’ performance, while others are not, but considered together, in interdependence with joint effects, they influence the team’s performance and the organization’s performance from the perspective of its sustainable strategic competencies.


2018 ◽  
Vol 62 (2) ◽  
pp. 97-107 ◽  
Author(s):  
Nina Keith

Abstract. The positive effects of goal setting on motivation and performance are among the most established findings of industrial–organizational psychology. Accordingly, goal setting is a common management technique. Lately, however, potential negative effects of goal-setting, for example, on unethical behavior, are increasingly being discussed. This research replicates and extends a laboratory experiment conducted in the United States. In one of three goal conditions (do-your-best goals, consistently high goals, increasingly high goals), 101 participants worked on a search task in five rounds. Half of them (transparency yes/no) were informed at the outset about goal development. We did not find the expected effects on unethical behavior but medium-to-large effects on subjective variables: Perceived fairness of goals and goal commitment were least favorable in the increasing-goal condition, particularly in later goal rounds. Results indicate that when designing goal-setting interventions, organizations may consider potential undesirable long-term effects.


2017 ◽  
Vol 16 (2) ◽  
pp. 61-76 ◽  
Author(s):  
Anaïs Thibault Landry ◽  
Marylène Gagné ◽  
Jacques Forest ◽  
Sylvie Guerrero ◽  
Michel Séguin ◽  
...  

Abstract. To this day, researchers are debating the adequacy of using financial incentives to bolster performance in work settings. Our goal was to contribute to current understanding by considering the moderating role of distributive justice in the relation between financial incentives, motivation, and performance. Based on self-determination theory, we hypothesized that when bonuses are fairly distributed, using financial incentives makes employees feel more competent and autonomous, which in turn fosters greater autonomous motivation and lower controlled motivation, and better work performance. Results from path analyses in three samples supported our hypotheses, suggesting that the effect of financial incentives is contextual, and that compensation plans using financial incentives and bonuses can be effective when properly managed.


2020 ◽  
Vol 105 (6) ◽  
pp. 619-636 ◽  
Author(s):  
Hudson Sessions ◽  
Jennifer D. Nahrgang ◽  
Daniel W. Newton ◽  
Melissa Chamberlin

Author(s):  
Luis Cláudio de Jesus-Silva ◽  
Antônio Luiz Marques ◽  
André Luiz Nunes Zogahib

This article aims to examine the variable compensation program for performance implanted in the Brazilian Judiciary. For this purpose, a survey was conducted with the servers of the Court of Justice of the State of Roraima - Amazon - Brazil. The strategy consisted of field research with quantitative approach, with descriptive and explanatory research and conducting survey using a structured questionnaire, available through the INTERNET. The population surveyed, 37.79% is the sample. The results indicate the effectiveness of the program as a tool of motivation and performance improvement and also the need for some adjustments and improvements, especially on the perception of equity of the program and the distribution of rewards.


Author(s):  
Debtanu Lahiri

The paper attempts at establishing alignment between compensation plans for employees in restaurants with customer preferences obtained by means of an exploratory research. The findings of the research indicate that food & beverage, cleanliness & comfort, assurance, personal attention, and special feeling are the dominant factors shaping customer expectations in India. Two different categories of customers were identified based on whether they prioritized dining experience or the tangibles associated with service. Ranking of priorities was done on the basis of the mean scores obtained in each of the factors mentioned above. For customers prioritizing tangibles, Special Feeling obtained the lowest score and featured at the bottom of the list. Food & Beverage, on the other hand, remained the top priority for customers across both categories. For the purpose of designing pay-for-performance plans, restaurants were categorized on the basis of their target customer segment. The percentage of variable pay was decided on two factors, (i) degree of control enjoyed by the employee and (ii) strategic importance of the particular function. The kitchen staffs were assumed to have suitable control over the Food & Beverage factor and the front-house staffs over the factors Assurance, Personal Attention and Special Feeling. To ascertain the strategic importance of a particular factor, the score obtained by it as well as its rank in the priority list were taken into consideration. Following this, suitable parameters for assessing the performance of employees were identified and their relevance discussed in some detail.


2018 ◽  
Vol 20 (1) ◽  
pp. 89 ◽  
Author(s):  
Andi Ina Yustina ◽  
Tifanny Valerina

This paper examines whether the work-family conflict (related to both work-interfering-family and family-interfering-work) of auditors affects their performance and if so, whether the effect is mediated by emotional exhaustion and job satisfaction. A mail survey is used to deliver a questionnaire to 151 auditors from ten CPA firm in Indonesia. The result shows that emotional exhaustion and job satisfaction fully mediates the relationship of work-family conflict with job performance. The result also demonstrates that Work-Interfering-Family (WIF) has significant effects on emotional exhaustion and job satisfaction, but Family-Interfering-Work (FIW) has no significant influence on either emotional exhaustion or job satisfaction. This study suggests that maintaining a regular training program for auditors, having flexible working arrangements, and encouraging a healthy lifestyle may help to reduce the work-family conflict and will increase the job satisfaction and performance of auditors.


2020 ◽  
Vol 48 (9) ◽  
pp. 1-12
Author(s):  
Karwan Hamasalih Qadir ◽  
Mehmet Yeşiltaş

Since 2003 the number of small- and medium-sized enterprises (SMEs) has increased exponentially in Iraqi Kurdistan. To facilitate further growth the owners and chief executive officers of these enterprises have sought to improve their leadership skills. This study examined the effect of transactional and transformational leadership styles on organizational commitment and performance in Iraqi Kurdistan SMEs, and the mediating effect of organizational commitment in these relationships. We distributed 530 questionnaires and collected 400 valid responses (75% response rate) from 115 SME owners/chief executive officers and 285 employees. The results demonstrate there were positive effects of both types of leadership style on organizational performance. Further, the significant mediating effect of organizational commitment in both relationships shows the importance of this variable for leader effectiveness among entrepreneurs in Iraqi Kurdistan, and foreign entrepreneurs engaging in new businesses in the region.


2021 ◽  
pp. 019459982110328
Author(s):  
Lauren E. Miller ◽  
Neil S. Kondamuri ◽  
Roy Xiao ◽  
Vinay K. Rathi

In 2017, the Centers for Medicare and Medicaid Services transitioned clinicians to the Merit-Based Incentive Payment System (MIPS), the largest mandatory pay-for-performance program in health care history. The first full MIPS program year was 2018, during which the Centers for Medicare and Medicaid Services raised participation requirements and performance thresholds. Using publicly available Medicare data, we conducted a retrospective cross-sectional analysis of otolaryngologist participation and performance in the MIPS in 2017 and 2018. In 2018, otolaryngologists reporting as individuals were less likely ( P < .001) to earn positive payment adjustments (n = 1076/1584, 67.9%) than those participating as groups (n = 2802/2804, 99.9%) or in alternative payment models (n = 1705/1705, 100.0%). Approximately one-third (n = 1286/4472, 28.8%) of otolaryngologists changed reporting affiliations between 2017 and 2018. Otolaryngologists who transitioned from reporting as individuals to participating in alternative payment models (n = 137, 3.1%) achieved the greatest performance score improvements (median change, +23.4 points; interquartile range, 12.0-65.5). These findings have important implications for solo and independent otolaryngology practices in the era of value-based care.


Author(s):  
David K Evans ◽  
Amina Mendez Acosta

Abstract Countries across Africa continue to face major challenges in education. In this review, we examine 145 recent empirical studies (from 2014 onward) on how to increase access to and improve the quality of education across the continent, specifically examining how these studies update previous research findings. We find that 64% of the studies evaluate government-implemented programs, 36% include detailed cost analysis and 35% evaluate multiple treatment arms. We identify several areas where new studies provide rigorous evidence on topics that do not figure prominently in earlier evidence syntheses. New evidence shows promising impacts of structured pedagogy interventions (which typically provide a variety of inputs, such as lesson plans and training for teachers together with new materials for students) and of mother tongue instruction interventions, as well as from a range of teacher programs, including both remunerative (pay-for-performance of various designs) and non-remunerative (coaching and certain types of training) programs. School feeding delivers gains in both access and learning. New studies also show long-term positive impacts of eliminating school fees for primary school and positive impacts of eliminating fees in secondary school. Education technology interventions have decidedly mixed impacts, as do school grant programs and programs providing individual learning inputs (e.g., uniforms or textbooks).


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