Research shows that under some conditions,performance-based pay has no effects or even has detrimental effects.

Question

Quizplus · Accepted Answer

Research has indeed shown that in certain circumstances, performance-based pay may not have any positive effects or may even lead to negative outcomes such as decreased intrinsic motivation, reduced creativity, and increased competition among employees. These conditions include situations where the goals or criteria for performance evaluation are ambiguous, where the employees perceive the pay system as unfair, and where the work is complex or requires teamwork. Therefore, it is important to carefully design and implement performance-based pay systems that align with the organization's goals and values and take into account the context and needs of the employees.

Research Shows That Under Some Conditions,performance-Based Pay Has No Effects