Effects of equitable and inequitable financial compensation on operator's productivity, satisfaction and motivation
- 1 March 1976
- journal article
- research article
- Published by Taylor & Francis in International Journal of Production Research
- Vol. 14 (2) , 305-310
- https://doi.org/10.1080/00207547608956603
Abstract
In studying the activities of 274 shop floor hourly operators during a period of 16 months, the evidence indicates that during a period of equitable payment system the number of grievances decreased 31 times, labour turnover 16 times, lateness 6 times and absenteeism nearly 3 times while at the same time productivity increased by 22% in comparison to an equivalent period of inequitable financial incentive payment system. These improvements are attributable to the relative and not absolute financial compensation of the operators.Keywords
This publication has 13 references indexed in Scilit:
- The Jaquesian level-of-work estimators: A systematic formulationOrganizational Behavior and Human Performance, 1974
- Equity theory as a predictor of productivity and work quality.Psychological Bulletin, 1968
- Inequity reduction over time in an induced overpayment situationOrganizational Behavior and Human Performance, 1968
- An examination of the effect of wage inequity in the hourly conditionOrganizational Behavior and Human Performance, 1968
- Wage Inequity, self-qualifications, and productivityOrganizational Behavior and Human Performance, 1967
- Effects of inequity produced by underpayment on work output, work quality, and attitudes toward the work.Journal of Applied Psychology, 1967
- Wage inequity and job performance: An experimental study.Journal of Applied Psychology, 1967
- Effects of wage inequities on work quality.The Journal of Abnormal and Social Psychology, 1964
- The relationship of worker productivity to cognitive dissonance about wage inequities.Journal of Applied Psychology, 1962
- Status Among Clerical WorkersHuman Organization, 1953