| Abstract: | The pay-for-performance relation was examined at the individual level of analysis using data from 71 managers and professionals who constituted the entire management hierarchy at a manufacturing facility. There was no significant correlation between performance rating and total merit raise (r?=?.19, ns). However, there was a significant hidden supervisory group effect: Units with higher average performance ratings were given higher average raises (r?=?.45, p?r?=?.03, ns). The results were analyzed and contrasted using the Within and Between Analysis technique (Dansereau, Alutto, & Yammarino, 1984) and the Contextual Analysis technique (Boyd & Iversen, 1979). Of the possible alternative explanations for the lack of relation between pay and performance at the individual level of analysis, these data suggest the need for the explicit consideration of the effects of group membership. (PsycINFO Database Record (c) 2010 APA, all rights reserved) |
