Performance-Contingent Rewards and Satisfaction: An Initial Analysis

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Abstract
This study argues that a positive relationship will exist between employee satisfaction and performance-contingent intrinsic rewards and pay. A rationale is offered for expecting this relationship, and an empirical examination conducted among 649 employees of 5 Midwestern organizations. Consistent relationships were found to exist between the two sets of variables, even when the effects of actual reward level were partialled out. Results were, however, inconsistent with predictions regarding the interactions of performance-contingent rewards with (a) locus of control, (b) equity, and (c) tolerance of ambiguity. Some implications of these results are discussed.