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Performance based pay : an empirical investigation of the impact of performance pay increases on perceptions critical to successful merit pay programs
The purpose of this study was to investigate the impact
of size of performance pay increases on employee perceptions
critical to the success of merit pay programs. Perceptions
investigated in this study included: 1) instrumentality,
2) expectancy, 3) performance appraisal administration,
4) performance appraisal content, 5) trust in city
management, 6) pay communication, and 7) importance of pay.
It was hypothesized that individuals who received above
average performance pay increases would exhibit significant
positive changes toward perceptions of interest while
individuals who received below average performance pay
increases would exhibit significant negative changes toward
perceptions of interest.