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"The Role of Performance-Related Pay in Renegotiating the "Effort Bargain

The Case of the British Public Service

Bibliographic Data

ID3230800
AuthorsDavid Marsden (0000-0001-7747-8377, London School of Economics and Political Science, corresponding author)
Year2004
Volume57
Issue3
Pages350-370
Publication date2004-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/001979390405700302
OpenAlexW2031812585
ISBN9793904057003
LanguageEN
Citations received6
References cited25

Much of the academic and policy literature on performance-related pay (PRP) focuses on its role as an incentive system. Its role as a means for renegotiating performance norms has been largely neglected. This study examines the introduction of performance-related pay, based mostly on appraisals by line managers, in Britain's public services during the 1990s. Previous research indicates that PRP failed to motivate many of the staff and that its operation was divisive. Nevertheless, other information suggests that productivity rose. This article seeks to resolve the paradox using contract theory to show that performance pay was the instrument of a major renegotiation of performance norms, and that this rather than motivation was the principal dynamic. Goal-setting and appraisal by line managers played a key role in this process

Business · Economic growth · Economics · Incentive · Key (lock) · Line management · Management · Microeconomics · Pay for performance · Performance appraisal · Performance-related pay · Political science · Principal (computer security) · Process (computing) · Productivity · Public economics · Public relations · Public service · Service (business) · Computer Science · Employment and Welfare Studies · Labor Movements and Unions · Marketing · Political and Economic history of UK and US · Public Policy and Administration Research

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Unique citing works5
Citations per year0,33
Citation span2008 - 2024 (17)
Citation velocityrecent
Highly citedNo

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