Title: Employees satisfied with performance measurement and rewards: is it even possible?

Authors: Juhani Ukko, Jussi Karhu, Sanna Pekkola

Addresses: Department of Industrial Management, Lappeenranta University of Technology, Lahti Unit, Saimaankatu 11, FI-15140 Lahti, Finland. ' Hobby Hall Ltd., Hameentie 157, FI-00560 Helsinki, Finland. ' Department of Industrial Management, Lappeenranta University of Technology, Lahti Unit, Saimaankatu 11, FI-15140 Lahti, Finland

Abstract: The motivational influence of performance-related rewards has been highlighted in the earlier literature on Performance Measurement (PM). This paper focuses on the linkage between participation in decision-making and the success of rewarding. The study is quantitative and the empirical evidence is based on a survey that was carried out in eight companies that operated in the manufacturing industry in 2005. To ensure an overall view, the survey was conducted with all employees of the studied companies. On the basis of the statistical analysis, it can be stated that the more autonomy in work that people have, the more successful they perceive the motivational influence of rewarding. The study suggests that companies should pay attention to the autonomy of employees in their work and, thus, ensure the successful use of performance-related rewarding.

Keywords: performance measurement systems; PMS; performance management; performance-related rewards; incentives; decision making participation; employee satisfaction; manufacturing industry; Finland; motivation; employee autonomy.

DOI: 10.1504/IJBEX.2009.021587

International Journal of Business Excellence, 2009 Vol.2 No.1, pp.1 - 15

Published online: 30 Nov 2008 *

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