Cayer, Kopelman and Greenberg (1991) Merit Pay: Road to the Bottom Line or Bottom of the Barrel?

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Merit Pay: Road to the Bottom Line or Bottom of the Barrel?

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CONTRIBUTORS:

	Author:	Cayer, Mo
	Author:	Kopelman, Richard E. (Baruch College)
	Author:	Greenberg, Janet L.

BOOK TITLE:

Applying Psychology in Business

YEAR:

1991

PUB TYPE:

Book Chapter

PAGES:

390 - 407

SUBJECT(S):

Merit pay, pay for performance, reward systems, organizational performance

DISCIPLINE:

Psychology

HTTP:

LANGUAGE:

English

PUB ID:

103-391-214 (Last edited on 2003/06/05 20:34:50 GMT-6)

SPONSOR(S):

ABSTRACT:
This chapter reviews the problems of implementing merit pay, the empirical evidence to date, and provides an in-depth analysis of the effects of merit pay at JCPenney. Had all stores at JCPenney paralleled those with a high pay-performance correlation, the company would have earned $30 million additional profit in 1983. Guidelines for implementinga merit pay plan are discussed.

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