Payment by results systems : British evidence
Document Type
Journal article
Source Publication
British Journal of Industrial Relations
Publication Date
3-1-1997
Volume
35
Issue
1
First Page
1
Last Page
22
Abstract
A model of the firm's decision to adopt a payment by results system is developed and tested with British establishment data. The model maintains that payment by results systems have larger set-up costs but lower supervision costs than time rates, particularly for short-tenure workers who are not well motivated by deferred compensation. The evidence confirms the model's predictions by showing that payment by results systems substitute for supervision, and that larger establishments and those with shorter-tenure workers are more likely to adopt payment by results. In addition, both the presence of a payment by results system and the new adoption of such a system are shown to exert a positive influence on measures of establishment performance.
DOI
10.1111/1467-8543.00038
Print ISSN
00071080
E-ISSN
14678543
Publisher Statement
Copyright © Blackwell Publishers Ltd/London School of Economics 1997
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Heywood, J. S., Siebert, W. S., & Wei, X. (1997). Payment by results systems: British evidence. British Journal of Industrial Relations, 35(1), 1-22. doi: 10.1111/1467-8543.00038