Typical Performance, Maximal Performance, and Performance Variability: Expanding Our Understanding of How Organizations Value Performance

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Abstract
Existing research has distinguished between typical and maximal performance. Performance variability is another potentially important aspect of performance that has been infrequently studied. Using longitudinal data from the National Basketball Association (N = 269), we address this gap by examining how these three conceptualizations of performance are related to how organizations compensate their employees. Results indicate that each of these performance aspects is bivariately related to compensation levels, accounting for between 32% and 58% of the variance in compensation. In addition, typical performance and performance variability incrementally predicts compensation levels, although maximal performance does not. Implications for research and practice are discussed.