The Study of Compensation Systems Through the Lens of Self-Determination Theory: Reconciling 35 Years of Debate

Although compensation specialists generally argue for incentive systems that link rewards to performance, self-determination theory argues that such contingent rewards can have detrimental effects on autonomous motivation. The authors present a model of the motivational effects of compensation systems that attempts to reconcile the self-determination theory view and the literature on compensation. This model evaluates how compensation system characteristics, such as the amount and variability of pay, can influence the satisfaction of the needs for autonomy, competence, and relatedness, which in turn influence autonomous work motivation. Si les spécialistes en rémunération sont généralement en faveur des systèmes de primes qui lient la récompense à la performance, la théorie de l’autodétermination, quant à elle, suggère que de telles récompenses contingentes peuvent nuire à la motivation autonome. Nous présentons un modèle des effets motivationnels engendrés par les systèmes de rémunération qui tente de faire concorder la théorie de l’autodétermination avec la documentation sur la rémunération. Ce modèle évalue de quelle façon les caractéristiques des systèmes de rémunération, tels les variations de la rémunération et son niveau, peuvent influer sur la satisfaction du besoin d’autonomie, la compétence et le rapprochement, lesquels peuvent, à leur tour, marquer la motivation autonome au travail.self-determination theory, compensation, rewards, incentives, organizational justice., théorie de l’autodétermination, compensation, récompenses, mesures incitatives, justice organisationnelle.

Testing a continuum structure of self-determined motivation: A meta-analysis

Self-determination theory proposes a multidimensional representation of motivation comprised of several factors said to fall along a continuum of relative autonomy. The current meta-analysis examined the relationships between these motivation factors in order to demonstrate how reliably they conformed to a predictable continuum-like pattern. Based on data from 486 samples representing over 205,000 participants who completed 1 of 13 validated motivation scales, the results largely supported a continuum-like structure of motivation and indicate that self-determination is central in explaining human motivation. Further examination of heterogeneity indicated that while regulations were predictably ordered across domains and scales, the exact distance between subscales varied across samples in a way that was not explainable by a set of moderators. Results did not support the inclusion of integrated regulation or the 3 subscales of intrinsic motivation (i.e., intrinsic motivation to know, to experience stimulation, and to achieve) due to excessively high interfactor correlations and overlapping confidence intervals. Recommendations for scale refinements and the scoring of motivation are provided

Improving Reactions to Forced-Choice Personality Measures in Simulated Job Application Contexts Through the Satisfaction of Psychological Needs

There is a wealth of evidence justifying the use of personality assessments for selection. Nonetheless, some reluctance to use these assessments stems from their perceived vulnerability to response distortion (i.e., faking) and the somewhat negative applicant reactions they elicit, when compared to other assessments. Adopting a forced-choice personality assessment format appears to alleviate the former problem but exacerbates the latter. In this study, we introduce basic psychological needs as a theoretical foundation to develop interventions to improve reactions to forced-choice personality assessments. We propose that the forced-choice format impedes respondents’ desire to respond to items in a preferred way, interfering with autonomy need satisfaction, and constrains respondents’ opportunity to show their capabilities, interfering with competence need satisfaction. In this pre-registered between-subjects experiment (N = 1565), we investigated two modifications to a ranked forced-choice personality questionnaire and compared these to traditional forced-choice and single-stimulus (Likert) formatted questionnaires. One modification, where participants could write a free-text response following the assessment, did not show significant effects on reactions. The second modification allowed participants to view all items they had ranked last (first) and then identify any the participant believed in fact described them well (poorly). That modification positively affected perceived autonomy- and competence-support, and fairness perceptions, bridging approximately half of the gap between reactions to forced-choice and single-stimulus assessment formats. This study suggests that a modification to forced-choice personality questionnaires may improve applicant reactions and that basic psychological needs theory may be a fruitful lens through which to further understand reactions to assessments

Compensation profiles among private sector employees in Sweden: Differences in work-related and health-related outcomes

How experiences and perceptions of pay and pay setting relate to employees’ job performance, willingness to remain in the organization, and health has been the subject of much debate. Previous research has typically used a variable-centered approach to investigate associations between different pay-related factors and such outcomes. In contrast, we used latent profile analysis to explore combinations of compensation characteristics (pay level, perceived horizontal pay dispersion, and procedural quality, i.e., transactional leadership and procedural pay-setting justice), combining relevant theories on the subject. Based on a nationally representative sample of private sector employees in Sweden (N = 1,146), our study identified six compensation profiles. Our key findings show, first, that higher levels of pay were generally associated with better performance, lower turnover intention, better self-rated health, and lower work-related exhaustion, especially when combined with perceptions of high procedural quality. Second, in terms of perceived horizontal pay dispersion, the results indicate that pay compression may be associated with beneficial outcomes, particularly when combined with high procedural quality. Third, procedural quality was generally associated with favorable work-related and health-related outcomes, although such positive effects may be contingent upon pay level and perceived horizontal pay dispersion. In conclusion, while pay level, perceptions of horizontal pay dispersion, and procedural quality may all matter for employee outcomes, it is important to consider their combinations

An integrative SDT-based investigation of the relation between financial incentives, motivation, and performance

To this day, researchers are debating the adequacy of using financial incentives to bolster performance in work settings. Our goal was to contribute to current understanding by considering the moderating role of distributive justice in the relation between financial incentives, motivation, and performance. Based on self-determination theory, we hypothesized that when bonuses are fairly distributed, using financial incentives makes employees feel more competent and autonomous, which in turn fosters greater autonomous motivation and lower controlled motivation, and better work performance. Results from path analyses in three samples supported our hypotheses, suggesting that the effect of financial incentives is contextual, and that compensation plans using financial incentives and bonuses can be effective when properly managed

A Temporal Analysis of the Relation between Organisational Commitment and Work Motivation

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Setting expectations during volunteer recruitment and the first day experience:A preregistered experimental test of the met expectations hypothesis

In a preregistered experimental study that draws from the met expectations hypothesis, we examined how volunteer recruitment messaging can shape expectations of new volunteers prior to their first day, and whether meeting or failing to meet expectations on the first day would affect satisfaction. By experimentally manipulating a recruitment poster, we set either a transactional (i.e., by volunteering, one can learn new skills) or a relational expectation (i.e., one can work in a team). Participants then viewed an experimentally determined vignette that depicted their first day as a volunteer as either being rich in, or bereft of, experiences of teamwork and learning new skills (crossed). We found that recruitment messaging strongly impacted the participants’ expectations of the volunteering experience prior to their first day. Neither meeting expectations regarding teamwork nor learning new skills played a statistically significant causal role in determining satisfaction. By contrast, richer experiences notwithstanding expectations, and especially those pertaining to learning new skills, were more important determinants of satisfaction. Polynomial regression analyses supported the experimental results, namely that experiences far more strongly determined satisfaction than did expectations. We conclude that providing richer experiences to volunteers is more important than expectation management for volunteer satisfaction

The role of perceived organizational support, distributive justice and motivation in reactions to new information technology

Despite tremendous investments in information technology (IT), many technological interventions in organizations fail because employees do not fully accept and use IT. The present study explored how perceived organizational support and distributive justice affect employee reactions to new IT from a motivational point of view. Self-determination theory was used to understand how different motivational styles, varying in degree of self-determination, mediate the relationship of perceived organizational support and distributive justice with reactions to new IT. Results showed that perceived organizational support and distributive justice were associated with intrinsic and identified motivation to use the IT, but only POS was related to enjoyment and acceptance of the IT. Intrinsic and extrinsic motivation were both associated with IT usage, but IT usage was associated with enjoyment and acceptance only when people were intrinsically motivated. Intrinsic motivation also mediated the effects of POS on enjoyment and acceptance. Moreover, intrinsically motivated users were less likely to use a paper-based appointment booking alternative than those who were not. Implications for managing IT implementations are discussed

Revisiting the Multidimensional Work Motivation Scale (MWMS)

This multi-sample study (5 samples) revisited the content and factor structure of the Multidimensional Work Motivation Scale (MWMS) through exploratory structural equation modelling. Specifically, the operational representation of, and the relations between, the types of behavioural regulation were investigated as was their relation to theoretical outcomes. Results suggest the removal of three problematic items and show that work motivation, as measured by the MWMS, is best represented by a factor structure reflecting autonomous motivation, introjected and external regulation as well as amotivation. Furthermore, introjected regulation is more strongly represented by its avoidance subscale, whereas the two types of external regulation (material and social) are not distinguishable. Lastly, autonomous motivation is linked to optimal employee functioning (e.g., vigor/vitality, satisfaction, lower turnover intention). The two controlled types of regulation have differentiated relations with performance, but are both linked to poor employee health and turnover intention, with (avoidance) introjected regulation being a particularly important predictor. By revisiting the content of the MWMS and cross-validating its structure in five samples, this study provides an empirically adequate representation of the types of regulation and their outcomes. Suggestions for future research aimed at improving the content of the MWMS are also offered

Transformational Leadership and Incivility: A Multilevel and Longitudinal Test

This research examines group-level perceptions of transformational leadership (TFL) as negative longitudinal predictors of witnessing person-related (e.g., insults/affronts) and work-related (e.g., negation/intentional work overload) acts of incivility at work. Witnessing workplace incivility was also postulated to negatively predict employee need satisfaction. Data were collected among production employees in different Canadian plants of a major manufacturing company (N = 344) who worked for 42 different managers (Mgroup size= 9.76). Two waves of data collection occurred 1 year apart. Results from multilevel analyses showed that workgroups where managers were perceived to engage in more frequent TFL behaviors reported reduced levels of person- and work-related incivility 1 year later. However, group-level incivility did not predict change in group-level need satisfaction 1 year later. At the individual level, results showed that witnessing higher levels of person-related incivility than one’s colleagues predicted reduced satisfaction of the need for relatedness 1 year later. These longitudinal findings build upon previous literature by identifying TFL as a potential managerial strategy to reduce incivility in workgroups over time. They also show that mere exposure to workplace misbehavior still affects employees’ adjustment, suggesting that every effort to reduce deviance in workplaces is worthwhile