TY - JOUR TI - What do you mean when you pay for performance? Conditional effects of pay-for-performance on job satisfaction and performance DO - https://doi.org/doi:10.7282/t3-ed96-h837 PY - 2019 AB - Drawing on the psychology theory of self-determination and economic perspectives on pay-for-performance, this study proposes that the effects of pay for performance (PFP) on job satisfaction, which in turn affects performance outcomes, can be influenced by the organizational contexts that support employee autonomy, competence, and relatedness. I specifically expect that PFP has a positive impact on job satisfaction and performance outcomes if an organization adopts PFP along with HR practices that support employee autonomy, competence, and relatedness. On the contrary, if an organization uses PFP without such HR practices, PFP may negatively influence job satisfaction and performance outcomes. While the direct effects of PFP on performance outcomes are positive, the total effects of PFP on performance outcomes may also be conditioned by those organizational contexts because of the conditional indirect effects. I tested this model in two independent studies using data collected from workplace sites. Study 1 employed a hierarchical linear modeling with multi-level data from R&D units. Study 2 tested the same model at the organizational level using a nationally representative longitudinal data. I also discuss the implications for theory and research on PFP. KW - Industrial Relations and Human Resources KW - Pay for performance KW - Merit pay LA - English ER -