The antecedents of satisfaction with pay in teams: do performance-based compensation and autonomy keep team-members satisfied?

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Series Details Vol.3, No.1, June 2012, p145
Publication Date June 2012
ISSN 2068-651X
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Abstract:

This paper aims to investigate the effects performance-based compensation and autonomy on satisfaction with pay in the context of team working. I develop a complex perspective that considers the influence of different monetary and non-monetary rewards on satisfaction with pay.

Drawing from the agency theory, equity theory and theory of cooperation I predict that both piece rates and team-based rewards are associated with higher pay satisfaction. Moreover, I claim that both individual and team-based autonomy contribute to increased satisfaction with pay.

Using a cross-sectional dataset of randomly selected European employees who are asked about specific working and living conditions, results confirm that both productivity-based rewards and autonomy are important for employee satisfaction. Managers should know when to introduce rewards based only on individual merits and when to give to use autonomy as a buffer to compensate for the potential lack of fairness in the payment system.

Source Link Link to Main Source http://www.ejes.uaic.ro/articles/EJES2012_0301_GOD.pdf
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