- 26/11/2012
- Posted by: essay
- Category: Free essays
The aim of this annotated bibliography is to discuss the impact of pay for performance in different area of work. Of all the eight annotations in this bibliography, two are statistical research on different countries, which are: New Zealand (Buetow, 2008); Taiwan (Li, Tsai, Khan, Yang, Lee, Wu and Kung, 2010) and other six general articles (Barth, Bratsberg, Heagland and Raaum, 2008); (Cromwell, Dorzd, Smith and Trisolini, 2007); (McCusland, Pouliakas and Theodossiou, 2005); (Jenkins, Mitra, Gupta and Shaw, 1998); (Weibel, Rost and Osterloh, 2009), Study pay for performance by discussion of the impact of pay for performance on job satisfaction and workers performance.
The studies show that job satisfaction and motivation are related to pay for performance, where it positively influences high-paid workers (McCausland et al. 2005) and Weibel et al. (2009) which is supported by Barh et al. (2008) as well. However, this idea does not include men and women because they are completely different in preferring the best payment way which is a result has been shown by Heywood et al, (2007). In addition, there is not a significant relationship between financial incentives to quality performance Jenkins et al, (1998).
. InTaiwanpay for performance has a positive impact on the treatment of patients with tuberculosis according to Li et al. (2010). This result is also has been shown by (Buetow, 2008) in his study inNew Zealandwhich is detected the development of the health care system by impact pay for performance policy. Moreover, using any method for pay for performance in medical field gives results to the targets Cromwell et al. (2007).
| REFERENCE | Barth, E., Bratsberg, B., Haegland, T. and Raaum, O. (2008). Who pays for performance. International Journal of Manpower, 29 (1), pp. 8-29. |
| AIM/PURPOSE | The purpose of the articles is to explain the reason that some firms choose different pay schemes and also why they tie compensation to worker performance. |
| ARTICLE TYPE | Research article based on surveys. |
| METHOD | Two surveys, the Norwegian flexibility from 1997 and the Norwegian work and establishment from 2003.
Sample: The samples were from the population of Norwegian establishments with more than 10 employees. The net samples consist of 2,130 establishments in 1997 and 2,358 establishments in 2003. Instruments and Data Collection: The surveys carried out as computer assisted and telephone interviews. Data Analysis: Used Xtprobit to estimate results. |
| FINDINGS
|
The performance-related pay depends on the area of industry and the type of workers:
1- Firms where workers have a high degree of autonomy performance-related pay is more common. 2- Some areas such as oil, mining and energy, construction, business services and wholesale trade are the industries where performance pay is most prevalent, while private-sector health services, education, transportation, and post and telecommunications have the smallest incidences. 3- There is a relationship between performance-related pay, products-market competition and foreign ownership. |
| RELATIONSHIP TO THEME AND OTHER ARTICLES | This article specifies the reasons why firms use different schemes as well as the differences between firms. However, the findings especially types of firms where performance-related pay have the smallest incidences such as health services is related with Cromwell et al. (2007), Y.-H. Li et al. (2010) and Buetow et al. (2008) as they discussed the impact of performance-related pay in health care. |
| STRENGTHS | The article used very good references which could be help for researchers in this area. Moreover, It has very good structure and writing language. |
| WEAKNESSES | The article did not focus on the 1997 survey as much It did on the 2003. Also the questions were not identical in the two surveys. |
| REFERENCE
|
McCausland, W.D., Pouliakas, K. and Theodossiou, I.(2005). Some are punished and some are rewarded: A study of the impact of performance pay on job satisfaction. International Journal of Manpower, 26 (7/8), pp. 636-659. |
| AIM/PURPOSE | To specify the differences in job satisfaction between receiving performance-related pay and alternative compensation plans. |
| ARTICLE TYPE | Research article based on surveys. |
| METHOD | Cross data from four waves (98-01) of the BHPS by using heckman-type economic procedure.
Sample: About 10,000 individuals who are employees in 5,500 British householders. Instruments and Data Collection: BHPS interview a random sample about 10,000 of British householders. Data Analysis: F-statistic used to avoid the problem of weak identification. KS and WMW used to test fitted job satisfaction distributions of performance-related pay and non-performance-related pay workers. |
| FINDINGS |
|
| RELATIONSHIP TO THEME AND OTHER ARTICLES | This article has a common point which could be related with Heywood et al, (2007) and Barth et al, (2008) as the Heywood et al, (2007) discussed the direct effects of pay for performance on job satisfaction and also McCausland et al, (2005) discussed the same topic. However, this article has been compared between performance-related pay and alternative compensation plans in job satisfaction. |
| STRENGTHS | Very clear introduction which help to understand and identify the purpose of the article. The article compared between high-paid workers and non-high-paid workers which Its purpose and the aim is explicit. |
| WEAKNESSES | Data analysis was not clear enough especially for non-specialist as well as there are some old references. |
| REFERENCE | Heywood J.S. & Wei X. (2007). Performance Pay and Job Satisfaction: Journal of Industrial Relations (48)4, pp. 523-540. |
| AIM/TYPE | To measure and analysis the direct effects of pay for performance on job satisfaction. |
| ARTICLE TYPE | Research article , and a survey is its base |
| METHOD | Sample:
mixing 12,000 males and females in age averages between 14 to 22, samples Instruments and Data Collection : 1988 Wave of The National Longitudinal Study of Youth (NLSY) (1988) Data Analysis : Using the 1988 Wave; for different measures of job satisfaction and half a dozen type of performance pay was revealed. |
| FINDING | Pay for Performance and sharing the profit should join together to get high satisfaction from the employers, and this role did not change even if they have constant salaries. However, the study shows that Men and Women are different in preferring the best payment way. |
| RELATIONSHIP TO TOPIC/SUBTOPIC & OTHER ARTICLES | This article discussed the direct effects of pay for performance on job satisfaction in general while McCausland et al, (2005) compared pay for performance to alternative compensation plans. However, they have a common theme with Cromwell et al, (2007), Y.-H. Li et al, (2010) and Buetow et al, (2008) even if these articles were specifically in health care. |
| STRENGTHS | It has a big reference list and good analysis data. In addition, the writing language and the paragraph divisions are clear. |
| WEAKNESSES | The research is depended on old survey and the results in 2000’s period which may be different for the international changes. The research did not focus on the role exceptions, and the results are just specific onU.S.that means it has proximity to changes depending on other countries conditions. |
| REFERENCE | Cromwell J. , Dorzd E.M. , Smith k. & Trisolini M. (2007). Financial Gains and Risks in Pay-for-Performance Bonus Algorithms. HealtH Care FinanCing review, 5-14. |
| AIM/TYPE | To discuss the best way for employers to improve health services by using special performance pay models. |
| ARTICLE TYPE | Research article depends on analysis and experience |
| METHOD | By simulate the field quality against special targets and also test its sensitivity to some parameters. Then estimate the steps that should follow to design bonus programs. |
| FINDING | Any using method for pay for performance in medical field with logical targets gives results close to the targets or over. |
| RELATIONSHIP TO TOPIC/SUBTOPIC & OTHER ARTICLES | It is clear that the articles Cromwell et al, (2007), Y.-H. Li et al, (2010) and Buetow et al, (2008) have the same purposes in general with differences in locations and samples. Also McCausland et al, (2005) discussed the impact of pay for performance which is related with Cromwell et al, (2007), Y.-H. Li et al, (2010) and Buetow et al, (2008). |
| STRENGTHS | Although the article topic is scientific, but it was very organized and has clear language to the reader. Also, the article part order is explanatory. |
| WEAKNESSES | The aim of article was not clear. Also, there are no summary or conclusion. The discussions need more explanations. |
| REFERENCE | Li,Y-H,Tsai,W-C,Khan,M,Yang,W-T,Lee,T-F,Wu,Y-C,&Kung,P-T.(2010). The effects of pay-for-performance on tuberculosis treatment in Taiwan. Health Policy and Planning,25, pp. 334–341. |
| AIM/PURPOSE | To identify the effects of pay-for-performance on tuberculosis treatment and to lower the transmission rate of the disease. |
| ARTICLE TYPE | Research article |
| METHOD
|
The author uses the quantitative methods of analysis, focusing on the study of statistical data concerning patients with tuberculosis inTaiwan. The author compares data concerning the treatment of patients before and after the implementation of the pay-for-performance policy. |
| FINDINGS | The author reveals the fact that the implementation of the pay-for-performance policy has a positive impact on the treatment of patients with tuberculosis because the cure rate has increased substantially after the implementation of the pay-for-performance policy. |
| RELATIONSHIP TO THEME AND OTHER ARTICLES | This article studies the impact of pay-for-performance on the quality of health care services, and despite being more specific, the findings of Li, Y.-H. et al. (2010) correlate with other studies in pay-for-performance field. Namely, the findings of Buetow S. (2010) also revealed that the quality of health care increases due to pay-for-performance system; Cromwell J. Dorzd E.M. , Smith k. & Trisolini M. agree with Li, Y.-H. on the direct relation between pay for performance introducing and better treatment of patients. |
| STRENGTHS
|
The article focuses on the empirical data, which convey precise information on effects of the implementation of the pay-for-performance policy. |
| WEAKNESSES | The lack of theoretical background to the study. |
| REFERENCE
|
Buetow, S. (2008). Pay-for-performance in New Zealandprimary health care. Journal of Health Organization and Management, 22, pp. 36-47. |
| AIM/PURPOSE
|
To describe and understand the introduction of pay-for-performance in New Zealand particularly in the health care as well as attempt to reveal peculiarities of the implementation of the pay-for-performance strategy, its strengths and weaknesses and possible outcomes. |
| ARTICLE TYPE | Research article – based on description and analysis. |
| METHOD
|
The author uses the description and analysis method to meet the goals of the research. The description and analysis refer to the implementation of the pay-for-performance policy inNew Zealandsolely. |
| FINDINGS | Basically, the author of the article reveals the fact that the implementation of the pay-for-performance policy has little impact on the development of the health care system ofNew Zealand. Nevertheless, the author reveals the fact that the pay-for-performance does not lead to the consistent rise of income in health care professionals. Instead, the pay-for-performance policy leads to the improvement of the quality of health care services. |
| RELATIONSHIP TO THEME AND OTHER ARTICLES
|
S. Buetow has proven in this article that introducing pay-for-performance system in health care will have an impact on quality improvement, but not on the income or development in health care industry. This paper contributes to the research previously made in this area, and adds to the findings of Li, Y.-H. et al, as well as with Cromwell et al (2007) concerning quality improvement. Also, findings by Weibel A., Rost K. & Osterloh M. (2009) support the conclusion that payment does not influence other variables beside health care quality; however, since quality of health care is the primary concern of professionals in this area today, all above-mentioned results indicate the important of pay-for-performance approach. |
| STRENGTHS
|
The article reveals important facts about consequences of the pay-for-performance policy inNew Zealand; the article uses reliable resources to support key findings. |
| WEAKNESSES
|
The lack of empirical data; the lack of experiments conducted by the author and relying on findings of other researchers. |
|
REFERENCE
|
Weibel, A, Rost, K, Osterloh, M (2009). Pay for Performance in the Public Sector—Benefits and (Hidden) Costs. Journal of Public Administration Research and Theory, 20, pp. 387-412. |
| AIM/PURPOSE | To discuss the impact of motivation on performance as well as analyses the impact of pay for performance on performance. |
| ARTICLE TYPE | Research article – based on description and analysis. |
|
METHOD
|
Sample:
Studies in: 1- Effeteness on task performance. 2- Pay performance on individual level. 3- Group of supervisors. 4- Information to limit the influence pay performance. The method of data collection: Identified the studies in four ways: 1- Conducted computerized database searches from 19714 to 2006 using the key words. 2- Conducted manual searches of those journals in their database. 3- Examined the reference lists in several meta-analyses. 4- Made a query for unpublished working papers in the field of economics. Data Analysis: mate-analysis |
| FINDINGS
|
In the case of noninteresting pay for performance positively impact on performance while it reduces performance in the case of interesting tasks. |
| RELATIONSHIP TO THEME AND OTHER ARTICLES | There is relates to Jenkins et al (1998). Clearly the impact of performance pay is the kind of continuity of the task that is subject to this regard. |
|
STRENGTHS |
The article is clearly revealed to pay for performance identification individual. Moreover, it showed the controversial issue between performance-related pay raises individual performance and beyond these implementation problems. |
|
WEAKNESSES
|
This research has some analysis of the missing and which are needed to support the cause. In addition, the development of studies based on payment performance |
|
REFERENCE
|
Jenkins, G., Mitra, A., Gupta, N., and Shaw, D. (1998). Are financial incentives related to performance? A meta-analytic review of empirical research. Journal of Applied Psychology, 83, pp. 777–87. |
| AIM/PURPOSE | To ascertain and analyses how financial incentives are related to performance quantity and quality. |
| ARTICLE TYPE | Research article – based on description and analysis. |
| METHOD
|
3 ways empirical studies of financial incentives and performance.
Sample: Over 39 studies containing 47 relationships, 43 studies depend on 7 decision rules and 3 search procedures, and 41 statistics performance quantity and 6 performance quality The method of data collection: Searching the electronic database using keywords. Reference lists of tests that contained in Jenkins (1986). Statistics of financial performance incentives, relational, form our database. Data Analysis: Meta-analysis. |
| FINDINGS | There is not a significant relationship between financial incentives and quality performance. |
| RELATIONSHIP TO THEME AND OTHER ARTICLES
|
In this article shows the relationship between financial incentives and payment of the performance of several aspects of the service employees. As well, consider this relationship from the physical aspect that demonstrates how important the link between financial incentives and performance pay. |
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STRENGTHS
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The article put all the criteria and analysis that shows how the importance of the relationship between financial incentives and performance pay. Force to resolve problems and disputes in a number of financial issues. Good number of references has been used. |
| WEAKNESSES
|
No enough explicit examples which show the importance of material incentives in the various fields. There is no clear conclusion |
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