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Employee preference for performance-related pay: predictors and consequences for organizational citizenship behaviour in a Japanese firm

Lee, Hyun-Jung, Iijima, Yuko and Reade, Carol (2011) Employee preference for performance-related pay: predictors and consequences for organizational citizenship behaviour in a Japanese firm. The International Journal of Human Resource Management, 22 (10). pp. 2086-2109. ISSN 0958-5192

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Abstract

Research on performance-related pay (PRP) has largely focused on the outcomes of PRP implementation in a Western context. This paper examines the predictors of employee preference for PRP and the consequences for organizational citizenship behaviour (OCB) in Japan where seniority-based pay and teamwork have long been the norm. The sample consists of 155 sales representatives in a large electric appliance manufacturing company that was transitioning from a seniority-based to a PRP-based compensation system. Overall, respondents indicated a preference for PRP over seniority-based pay. The hierarchical regression results indicate that employee preference for PRP is positively and significantly associated with individual competitiveness and occupational commitment, while being negatively and significantly related to organizational commitment and to the age group of employees who joined the labour market prior to the bursting of the economic bubble in Japan. No significant relationship was observed between PRP preference and OCB in the hierarchical regression analysis, although the two are positively and significantly correlated contrary to our expectations. Implications for international human resource management are discussed.

Item Type: Article
Official URL: http://www.informaworld.com/smpp/title~content=t71...
Additional Information: © 2011 Taylor & Francis
Library of Congress subject classification: D History General and Old World > DS Asia
H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M14 - Corporate Culture; Social Responsibility
Sets: Research centres and groups > Employment Relations and Organisational Behaviour Group
Departments > Management
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: UT ISI:000292724900003
Date Deposited: 13 Jul 2011 13:49
URL: http://eprints.lse.ac.uk/37016/

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