25 Pages

Schedules of Reinforcement: Lessons from the Past and Issues for the Future

WithGary P. Latham, Vandra L. Huber

Confronted with rising global competition in terms of products, services and prices, organizations must consider every option which promises to produce a competitive advantage. In such a turbulent environment, interest in individual and group pay-for-performance systems (schedules of reinforcement)—which has waxed and waned in the past —is on the rise again. It is, therefore, an appropriate time to review the evidence on the effectiveness of individual and group pay-for-performance systems. At the same time, the situational factors upon which effectiveness of these systems depend must be identified. This review addresses each of these issues in some detail.