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Asia Pacific Journal of Management

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01-03-2013

Group-based pay-for-performance plans and firm performance: The moderating role of empowerment practices

Authors: Hyondong Kim, Kyra L. Sutton, Yaping Gong

Published in: Asia Pacific Journal of Management | Issue 1/2013

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Abstract

As the popularity of group-based pay-for-performance plans persists, compensation researchers are exploring the conditions under which these plans contribute to the financial performance of firms. Based on a sample of 1,933 employees from 415 companies in South Korea, we found that group-based pay-for-performance plans enhance both objective and subjective measures of firm performance. Furthermore, consistent with the contingency perspective of fit, we found that empowerment practices positively moderate the relationship between group-based pay-for-performance plans and firm performance. These findings suggest that empowerment can enhance the effectiveness of such pay plans. We discuss implications for research and practice.

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Title: Group-based pay-for-performance plans and firm performance: The moderating role of empowerment practices
Authors: Hyondong Kim
Kyra L. Sutton
Yaping Gong
Publication date: 01-03-2013
Publisher: Springer US
Published in: Asia Pacific Journal of Management / Issue 1/2013
Print ISSN: 0217-4561
Electronic ISSN: 1572-9958
DOI: https://doi.org/10.1007/s10490-011-9255-7

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