Dr. Victor Tiberius
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Does "Pay-for-Performance" pay off?
Newsmeldung vom 12.04.2009, Kategorie: Beitrag
This is the question Katja Rost and Margit Osterloh, both University of Zurich, ask. "Pay-for-Performance" is a practice for management salary that refers to the relation between firm performance and payment. As the authors claim it has the status of a management fashion (like TQM, portfolio management, empowerment, and many others). Their empirical findings show that the firm's performance does not increase due to higher payment. So the answer is: no, it doesn't pay off. The article can be read in Schmalenbach Business Review, Vol. 61 (2009), April issue, pp. 119-149.
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