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Matchmaking: The Influence of Monitoring Environments on the Effectiveness of Performance Pay Systems

Overview In recent years, performance-related pay (PRP) has become a standard element of the management toolkit for achieving competitiveness. However, despite this apparent popularity among business practitioners, the evidence is weak for the blanket superiority of compensation systems that incorporate elements of PRP over their "traditional" time-based counterparts. This paper presents evidence that there exists an interaction effect between pay system and monitoring environment, which exerts a significant influence upon a workplace's economic performance.

Further White Paper Details
Publisher	London School of Economics and Political Science	File Format	PDF, requires Acrobat Rdr 5
Date Published	August 2002	Downloads	1
Format	White Papers
Topics	Performance Budgeting and Management, Human Capital Management

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