Pay for performance intends to raise performance by paying bonuses when certain targets are reached. However, for complex and ambiguous tasks, evidence-based studies have been unable to show that this is the case. The widespread implementation of pay for performance in areas like management, research, healthcare, or public service, therefore, is not justified. In contrast, variable pay for performance worsens performance of such tasks. Nonetheless, enthusiasm for pay for performance remains strong.
CITATION STYLE
Osterloh, M. (2017). Pay for performance raises performance. In Economic Ideas You Should Forget (pp. 97–98). Springer International Publishing. https://doi.org/10.1007/978-3-319-47458-8_42
Mendeley helps you to discover research relevant for your work.