This new paper, which is joint with Sungjoo Choi of Kyung Hee University, is now available online at the International Public Management Journal. Here’s the abstract:
While many studies have sought to understand the association between merit-based pay and organizational performance, few have assessed the psychological wellbeing of employees in agencies with such incentive schemes. We show that employees in agencies with merit-based pay are less satisfied with their organization than are those working in agencies that do not implement the incentive systems. We also show that this negative effect is larger in the case of organizational satisfaction than for pay satisfaction or employee satisfaction with the job itself.