Meta Analysis On The Implementation Effect Of Employee Level Pay For Performance

Pay for performance is an important part of organizational performance and compensation management.It refers to the compensation schema that links performance with compensation and takes performance level as an important basis for compensation payment.In recent years,in the practice of management,more and more organizations use employee level pay for performance(compared with team level pay for performance and organization level pay for performance,"pay for performance" is used later to substitute for “employee level pay for performance”)to motivate employees and improve their work enthusiasm.Pay for performance is widely used because it can motivate employees to work hard without increasing the cost of the organization,so as to realize the growth and development of the organization.At the same time,the pay for performance schema can also influence the composition of employees(such as the ability and personality of employees)through the attraction,selection and elimination of talents(Lazear,2003).These two aspects are the main implementation effect of pay for performance schema,also known as the incentive effect and sorting effect.In academic circles,there are a large number of literature on the implementation effect of pay for performance,in which the incentive effect of pay for performance is the focus of scholars.The existing research focused on pay for performance can be divided into two aspects: compared with the implementation of fixed pay schema and no pay schema,the impact of the implementation of pay for performance schema on employees’ intrinsic motivation(task interest,performance);the impact of the important element of pay for performance schema,namely the intensity of pay for performance on employees’ cognition and behavior.The former is the focus of foreign scholars’ research,mainly in the experimental condition,in which the scholars mainly focus on the impact of pay for performance schema on employees’ intrinsic motivation compared with the situation of no pay.The latter is the focus of domestic scholars,usually in the organizational context with the method of questionnaire survey.In the aspect,scholars mainly focus on the incentive effect of the intensity of pay for performance,such as the impact of the intensity of pay for performance on employees’ performance,innovation and other behaviors.However,there are some differences between the two directions.On the impact of pay for performance schema on employees’ intrinsic motivation,some studies show that pay for performance will weaken employees’ intrinsic motivation;others show that pay for performance has no significant weakening effect on employees’ intrinsic motivation;some scholars have concluded that pay for performance not only does not weaken employees’ intrinsic motivation,but also can enhance employees’ intrinsic motivation.On the impact of the intensity of pay for performance on employees’ cognition and behavior,the existing research conclusions are inconsistent,for example,on the relationship between the intensity of pay for performance and employees’ performance.Some scholars believe that there is a positive correlation between the intensity of pay for performance and employees’ performance.However,some scholars have shown that there is no significant relationship between the intensity of pay for performance and employees’ performance.In order to explore the implementation effect of pay for performance at the employee level,this paper integrates the two research focuses in this field,and makes a quantitative analysis of the existing empirical literature by using the technology of meta-analysis.This paper uses CMA2.0 as the tool of data analysis.The results of meta-analysis show that,compared with the fixed compensation schema,the implementation of pay for performance schema will have a positive impact on employees’ intrinsic motivation(task interest,performance);the intensity of pay for performance will have a positive impact on employees’ intrinsic motivation,fairness perception,salary satisfaction,work engagement,performance,innovation,and performance There is no significant correlation between the intensity of pay for performance and organizational citizenship behavior,self-efficacy.In addition,this paper also uses meta-analysis technology to explore the moderating effect of national culture(individualism vs collectivism)and the measurement methods of related variables on the main effect.The results of meta-analysis show that the relationship between the intensity of pay for performance and employees’ cognition and behavior is relatively stable in countries with different cultures.National culture only regulate the relationship between the intensity of pay for performance and turnover.In addition,the results of meta-analysis confirmed that the measurement methods of related variables play an important role in regulating the relationship between variables.