Abstract
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.