Browsing by Author "Hakonen, Anu Marjaana"

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Tulospalkkauksen merkitys henkilöstölle ja sen vaikutukset yksilöiden toimintaan: Tutkimus palkitsemisen reflektioteorian toimivuudesta
(2006) Hakonen, Anu Marjaana
Helsinki University of Technology | Licentiate thesis
This study examines 1) the different meanings of the results oriented pay for the employees, 2) is the structure of the results oriented pay related to its meaning, and 3) how the theoretical frame of this study, that is, the reflection theory of pay works. The reflection theory of pay has been developed by Henk Thierry (1998, 2001) but it has only rarely been tested empirically. According to Thierry, the theory is still under construction. The basic idea of the theory is that pay may be meaningful for an individual if it communicates about issues important to that individual. Pay may have four types of meaning. Firstly, it may have instrumental value in achievement of an important objective. Secondly, via pay a person may get feedback on his or her performance compared to objectives or coworkers. Thirdly, pay may reflect a person's power position at workplace. Fourthly, pay may support material well-being. In addition, the theory suggests that the meaning of pay mediates the relationship between a pay system and individual motivation and performance. This study consists of two empirical parts. Firstly, a qualitative part based on the analysis of thematic interviews explores the different dimensions of the meaning of pay. Based on that, a quantitative part, using a survey data (N = 858), is used to test the propositions of the theory. Based on the qualitative study (part one) of this study, results oriented pay has monetary, feedback related, and respect related meanings. The analysis of the survey (part two) discloses that results oriented pay has most meaning for persons who have individual level pay measures and large rewards. Moreover, the results oriented pay affects most to the performance of these persons. It was also found that the results oriented pay has more effects on individual performance when the pay system is clearly connected to the strategy of the organization and when the employees have participated in the pay system development. Furthermore, the results oriented pay has more meaning and more effects on performance the better the employees know the pay system. This study provides clear support for the propositions of the reflection theory of pay. The results suggest that the meaning of pay partially mediates the relationships between pay system structure and knowledge of the pay system, and performance. The meaning mediated fully the relationships between the way of pay system was developed, its strategy-connectedness, and performance. In addition, the theory's proposition according to which the knowledge of the pay system moderates the relationship between pay system and its meaning gained support. The higher the level of knowledge the stronger the meaning of pay. Furthermore, an additional, respect related meaning of pay, was discovered in addition to the four above mentioned meanings.