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Organizational control systems and pay-for-performance in the public service

Organizational control systems and pay-for-performance in the public service
Organizational control systems and pay-for-performance in the public service
Under certain conditions, output related performance measurement and pay-for-performance produce negative outcomes. We argue that in public service, these negative effects are stronger than in the private sector. We combine Behavioural Economics and Management Control Theory to determine under which conditions this is the case. We suggest as alternatives to the dominant output related pay-for-performance systems selection and socialization, exploratory use of output performance measures, and awards.
0170-8406
949-972
Frey, Bruno S.
2e4601d3-2093-4db3-83b2-20dc030fbe56
Homberg, Fabian
31042a5c-cd37-46a1-bdde-53abb55f1072
Osterloh, Margit
57a6f623-7a4a-42ca-b512-c8a35add1e01
Frey, Bruno S.
2e4601d3-2093-4db3-83b2-20dc030fbe56
Homberg, Fabian
31042a5c-cd37-46a1-bdde-53abb55f1072
Osterloh, Margit
57a6f623-7a4a-42ca-b512-c8a35add1e01

Frey, Bruno S., Homberg, Fabian and Osterloh, Margit (2013) Organizational control systems and pay-for-performance in the public service. Organization Studies, 34 (7), 949-972. (doi:10.1177/0170840613483655).

Record type: Article

Abstract

Under certain conditions, output related performance measurement and pay-for-performance produce negative outcomes. We argue that in public service, these negative effects are stronger than in the private sector. We combine Behavioural Economics and Management Control Theory to determine under which conditions this is the case. We suggest as alternatives to the dominant output related pay-for-performance systems selection and socialization, exploratory use of output performance measures, and awards.

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e-pub ahead of print date: 23 May 2013
Published date: July 2013
Organisations: Southampton Business School

Identifiers

Local EPrints ID: 398708
URI: http://eprints.soton.ac.uk/id/eprint/398708
ISSN: 0170-8406
PURE UUID: 1c997c43-0aaf-4fa5-ad62-2d6cf82aa82c

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Date deposited: 01 Aug 2016 10:20
Last modified: 15 Mar 2024 01:39

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Contributors

Author: Bruno S. Frey
Author: Fabian Homberg
Author: Margit Osterloh

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