614
Views
0
CrossRef citations to date
0
Altmetric
Articles

Differential effects of autonomy on employee satisfaction and organizational performance depending on the type of financial incentives: evidence from a four-wave panel of Korean companies

&
Pages 3656-3686 | Received 26 May 2021, Accepted 01 Nov 2022, Published online: 11 Nov 2022

References

  • Baard, P. P., Deci, E. L., & Ryan, R. M. (2004). Intrinsic need satisfaction: A motivational basis of performance and well-being in two work settings. Journal of Applied Social Psychology, 34(10), 2045–2068. https://doi.org/10.1111/j.1559-1816.2004.tb02690.x
  • Balkin, D. B., Roussel, P., & Werner, S. (2015). Performance contingent pay and autonomy: Implications for facilitating extra-role creativity. Human Resource Management Review, 25(4), 384–395. https://doi.org/10.1016/j.hrmr.2015.07.001
  • Banker, R. D., Field, J. M., Schroeder, R. G., & Sintia, K. K. (1996). Impact of work teams on manufacturing performance: A longitudinal field study. Academy of Management Journal, 39(4), 867–890. https://doi.org/10.2307/256715
  • Barnes, C. M., Hollenbeck, J. R., Jundt, D. K., DeRue, D. S., & Harmon, S. J. (2011). Mixing individual incentives and group incentives: Best of both worlds or social dilemma? Journal of Management, 37(6), 1611–1635. https://doi.org/10.1177/0149206309360845
  • Brisimis, E., Krommidas, C., Galanis, E., Karamitrou, A., Syrmpas, I., & Comoutos, N. (2021). Exploring the relationships of autonomy-supportive climate, psychological need satisfaction and thwarting with students’ self-talk in physical education. Journal of Education, Society and Behavioural Science, 33(11), 112–122.
  • Cohen, J., Cohen, P., West, S. G., & Aiken, L. (2003). Applied multiple regression/correlation analysis for the behavioral sciences. Lawrence Erlbaum.
  • Deci, E. L., Connell, J. P., & Ryan, R. M. (1989). Self-determination in a work organization. Journal of Applied Psychology, 74(4), 580–590. [Database] https://doi.org/10.1037/0021-9010.74.4.580
  • Deci, E. L., Koestner, R., & Ryan, R. M. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125(6), 627–668.
  • Deci, E. L., & Ryan, R. M. (1987). The support of autonomy and the control of behavior. Journal of Personality and Social Psychology, 53(6), 1024–1037.
  • Deci, E. L., Ryan, R. M., Gagne, M., Leone, D. R., Usunov, J., & Kornazheva, B. P. (2001). Need satisfaction, motivation, and well-being in the work organizations of a former eastern bloc country: A cross-cultural study of self-determination. Personality and Social Psychology Bulletin, 27(8), 930–942. https://doi.org/10.1177/0146167201278002
  • Dincer, A., Yesilyurt, S., & Takkac, M. (2012). The effects of autonomy-supportive climates on EFL learners’ engagement, achievement and competence in English speaking classrooms. Procedia—Social and Behavioral Sciences, 46, 3890–3894. https://doi.org/10.1016/j.sbspro.2012.06.167
  • Edmondson, A. (1999). Psychological safety and learning behavior in work teams. Administrative Science Quarterly, 44(2), 350–383. https://doi.org/10.2307/2666999
  • Edwards, J. R., & Lambert, L. S. (2007). Methods for integrating moderation and mediation: A general analytical framework using moderated path analysis. Psychological Methods, 12(1), 1–22.
  • Eisenberger, R., Rhoades, L., & Cameron, J. (1999). Does pay for performance increase or decrease perceived self-determination and intrinsic motivation? Journal of Personality and Social Psychology, 77(5), 1026–1040. https://doi.org/10.1037/0022-3514.77.5.1026
  • Ettlie, J. E. (1995). Product-process development integration in manufacturing. Management Science, 41(7), 1224–1237. https://doi.org/10.1287/mnsc.41.7.1224
  • Fang, M., & Gerhart, B. (2012). Does pay for performance diminish intrinsic interest? The International Journal of Human Resource Management, 23(6), 1176–1196. https://doi.org/10.1080/09585192.2011.561227
  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104
  • Fulmer, C. S., & Ostroff, C. (2016). Convergence and emergence in organizations: An integrative framework and review. Journal of Organizational Behavior, 37, S122–S145. https://doi.org/10.1002/job.1987
  • Gagne, M., & Deci, E. L. (2005). Self-determination theory and work motivation. Journal of Organizational Behavior, 26(4), 331–362. [Database] https://doi.org/10.1002/job.322
  • Gahan, P., Michelotti, M., & Standing, G. (2012). The diffusion of HR practices in Chinese workplaces and organizational outcomes. ILR Review, 65(3), 651–685. https://doi.org/10.1177/001979391206500308
  • Giebe, C., & Rigotti, T. (2022). Tenets of self-determination theory as a mechanism behind challenge demands: A within-person study. Journal of Managerial Psychology, 37(5), 480–497. https://doi.org/10.1108/JMP-11-2019-0648
  • Gomez-Mejia, L. R., Welbourne, T. M., & Wiseman, R. M. (2000). The role of risk sharing and risk taking under gainsharing. The Academy of Management Review, 25(3), 492–507. https://doi.org/10.2307/259306
  • Green, W. H. (2008). Econometric Analysis (6th ed.). Prentice Hall.
  • Han, J. H., Kang, S., Oh, I., Kehoe, R. R., & Lepak, D. P. (2019). The goldilocks effect of strategic human resource management? Optimizing the benefit of a high-performance work system through the dual alignment of vertical and horizontal fit. Academy of Management Journal, 62(5), 1388–1412. https://doi.org/10.5465/amj.2016.1187
  • Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. The Journal of Applied Psychology, 87(2), 268–279.
  • Hatcher, L., & Ross, T. L. (1991). From individual incentives to an organization-wide gainsharing plan: Effects on teamwork and product quality. Journal of Organizational Behavior, 12(3), 169–183. https://doi.org/10.1002/job.4030120302
  • Hayes, A. F. (2013). Introduction to mediation, moderation, and conditional process analysis. The Guilford Press.
  • Heyns, M., & Rothmann, S. (2018). Volitional trust, autonomy satisfaction, and engagement at work. Psychological Reports, 121(1), 112–134.
  • Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635–672. https://doi.org/10.2307/256741
  • Huyghebaert-Zouaghi, T., Morin, A., Ntoumanis, N., Berjot, S., & Gillet, N. (in press). Supervisors’ interpersonal styles: An integrative perspective and a measure based on self-determination theory. Applied Psychology: An International Review.
  • James, L. R., Demaree, R. G., & Wolf, G. (1993). Rwg: An assessment of within-group interrater agreement. Journal of Applied Psychology, 78(2), 306–309. https://doi.org/10.1037/0021-9010.78.2.306
  • Janz, B. D. (1999). Self-directed teams in IS: Correlates for improved systems development work outcomes. Information & Management, 35(3), 171–192. https://doi.org/10.1016/S0378-7206(98)00088-3
  • Jaskiewicz, P., Block, J. H., Miller, D., & Combs, J. G. (2017). Founder versus family owners’ impact on pay dispersion among non-CEO top managers: Implications for firm performance. Journal of Management, 43(5), 1524–1552. https://doi.org/10.1177/0149206314558487
  • Jiang, Y., & Chen, C. C. (2018). Integrating knowledge activities for team innovation: Effects of transformational leadership. Journal of Management, 44(5), 1819–1847. https://doi.org/10.1177/0149206316628641
  • Jo, H., Aryee, S., Hsiung, H., & Guest, D. (2020). Fostering mutual gains: Explaining the influence of high-performance work systems and leadership on psychological health and service performance. Human Resource Management Journal, 30(2), 198–225. https://doi.org/10.1111/1748-8583.12256
  • Jones, D. C., Kalmi, P., Kato, T., & Makinen, M. (2017). Complementarities between employee involvement and financial participation: Do institutional context, differing measures, and empirical methods matter? ILR Review, 70(2), 395–418. https://doi.org/10.1177/0019793916657538
  • Joreskog, K. G., & Sorbom, D. (2004). LISREL 8.7 for Windows. Scientific Software International.
  • Judge, T. A., Thoresen, C. J., Bono, J. E., & Patton, G. K. (2001). The job satisfaction-job performance relationship: A qualitative and quantitative review. Psychological Bulletin, 127(3), 376–407.
  • Kandel, E., & Lazear, E. P. (1992). Peer pressure and partnerships. Journal of Political Economy, 100(4), 801–817. https://doi.org/10.1086/261840
  • Karasek, R., Brisson, C., Kawakami, N., Houtman, I., Bongers, P., & Amick, B. (1998). The Job Content Questionnaire (JCQ): An instrument for internationally comparative assessments of psychosocial job characteristics. Journal of Occupational Health Psychology, 3(4), 322–355.
  • Kenny, D. A., & La Voie, L. (1985). Separating individual and group effects. Journal of Personality and Social Psychology, 48(2), 339–348. https://doi.org/10.1037/0022-3514.48.2.339
  • Kim, J. Y., & Keane, A. (2021). Factors contributing to Korean employees’ job satisfaction: A multilevel study. Journal of Career Development, 48(4), 459–474. https://doi.org/10.1177/0894845319880611
  • Kirkman, B. L., Tesluk, P. E., & Rosen, B. (2001). Assessing the incremental validity of team consensus ratings over aggregation of individual-level data in predicting team effectiveness. Personnel Psychology, 54(3), 645–667. https://doi.org/10.1111/j.1744-6570.2001.tb00226.x
  • Koys, D. J. (2001). The effects of employee satisfaction, organizational citizenship behavior, and turnover on organizational effectiveness: A unit-level, longitudinal study. Personnel Psychology, 54(1), 101–114. https://doi.org/10.1111/j.1744-6570.2001.tb00087.x
  • Kozlowski, S. W., & Klein, K. J. (2000). A multilevel approach to theory and research in organizations: Contextual, temporal and emergent properties. In K. J. Klein & S. W. Kozlowski (Eds.), Multilevel theory, research, and methods in organizations (pp. 3–90). Jossey-Bass.
  • Kruse, L. D. (1993). Profit-sharing: Does it make a difference? The productivity and stability effects of employee profit-sharing plans. W.E. Upjohn Institute for Employment Research.
  • Landry, A. T., Zhang, Y., Papachristopoulos, K., & Forest, J. (2020). Applying self-determination theory to understand the motivational impact of cash rewards: New evidence from lab experiments. International Journal of Psychology: Journal International de Psychologie, 55(3), 487–498.
  • Langfred, C. W., & Rockmann, K. W. (2016). The push and pull of autonomy: The tension between individual autonomy and organizational control in knowledge work. Group & Organization Management, 41(5), 629–657. https://doi.org/10.1177/1059601116668971
  • LeBreton, J. M., & Senter, J. L. (2008). Answers to 20 questions about interrater reliability and interrater agreement. Organizational Research Methods, 11(4), 815–852. https://doi.org/10.1177/1094428106296642
  • Lee, C. (1988). The effects of goal setting and monetary incentives on self-efficacy and performance. Journal of Business and Psychology, 2(4), 366–372. https://doi.org/10.1007/BF01013767
  • Liu, D., Chen, X., & Yao, X. (2011). From autonomy to creativity: A multilevel investigation of the mediating role of harmonious passion. The Journal of Applied Psychology, 96(2), 294–309.
  • Liu, D., & Fu, P. (2011). Motivating protégés’ personal learning in teams: A multilevel investigation of autonomy support and autonomy orientation. The Journal of Applied Psychology, 96(6), 1195–1208.
  • Liu, Y., Wang, S., Zhang, J., & Li, S. (2022). When and how job design influences work motivation: A self-determination theory approach. Psychological Reports, 125(3), 1573–1600.
  • Martela, F., & Ryan, R. M. (2020). Distinguishing between basic psychological needs and basic wellness enhancers: The case of beneficence as a candidate psychological need. Motivation and Emotion, 44(1), 116–133. https://doi.org/10.1007/s11031-019-09800-x
  • Morgeson, F. P., & Hofmann, D. A. (1999). The structure and function of collective constructs: Implications for multilevel research and theory development. The Academy of Management Review, 24(2), 249–265. https://doi.org/10.2307/259081
  • Motowidlo, S. J. (1984). Does job satisfaction lead to consideration and personal sensitivity? Academy of Management Journal, 27(4), 910–915. https://doi.org/10.2307/255889
  • Muller, T., & Niessen, C. (2019). Self-leadership in the context of part-time teleworking. Journal of Organizational Behavior, 40(8), 883–898. https://doi.org/10.1002/job.2371
  • Nie, Y., Chua, B. L., Yeung, A. S., Ryan, R. M., & Chan, W. Y. (2015). The importance of autonomy support and the mediating role of work motivation for well-being: Testing self-determination theory in a Chinese work organization. International Journal of Psychology, 50(4), 245–255. https://doi.org/10.1002/ijop.12110
  • O'Donoghue, D., & van der Werff, L. (2022). Empowering leadership: Balancing self-determination and accountability for motivation. Personnel Review, 51(4), 1205–1220. https://doi.org/10.1108/PR-11-2019-0619
  • Olafsen, A. H., Deci, E. L., & Halvari, H. (2018). Basic psychological needs and work motivation: A longitudinal test of directionality. Motivation and Emotion, 42(2), 178–189. https://doi.org/10.1007/s11031-017-9646-2
  • Park, R., & Kruse, D. (2014). Group incentives and financial performance: The moderating role of innovation. Human Resource Management Journal, 24(1), 77–94. https://doi.org/10.1111/1748-8583.12022
  • Park, R. (2015). Employee participation and outcomes: Organizational strategy does matter. Employee Relations, 37(5), 604–622. https://doi.org/10.1108/ER-09-2014-0107
  • Park, R. (2018). The roles of OCB and automation in the relationship between job autonomy and organizational performance: A moderated mediation model. The International Journal of Human Resource Management, 29(6), 1139–1156. https://doi.org/10.1080/09585192.2016.1180315
  • Park, S., & Kim, E. (2019). Organizational culture, leaders’ vision of talent, and HR functions on career changers’ commitment: The moderating effect of training in South Korea. Asia Pacific Journal of Human Resources, 57(3), 345–368. https://doi.org/10.1111/1744-7941.12192
  • Pendleton, A., & Robinson, A. (2017). The productivity effects of multiple pay incentives. Economic and Industrial Democracy, 38(4), 588–608. https://doi.org/10.1177/0143831X15583099
  • Peterson, S. J., & Luthans, F. (2006). The impact of financial and nonfinancial incentives on business-unit outcomes over time. The Journal of Applied Psychology, 91(1), 156–165.
  • Rigby, C. S., & Ryan, R. M. (2018). Self-determination theory in human resource development: New directions and practical considerations. Advances in Developing Human Resources, 20(2), 133–147. https://doi.org/10.1177/1523422318756954
  • Ryan, A. M., Schmit, M. J., & Johnson, R. (1996). Attitudes and effectiveness: Examining relations at an organizational level. Personnel Psychology, 49(4), 853–882. https://doi.org/10.1111/j.1744-6570.1996.tb02452.x
  • Ryan, R. M., & Deci, E. L. (2000a). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. The American Psychologist, 55(1), 68–78.
  • Ryan, R. M., & Deci, E. L. (2000b). Intrinsic and extrinsic motivations: Classic definitions and new directions. Contemporary Educational Psychology, 25(1), 54–67.
  • Rynes, S. L., Gerhart, B., & Parks, L. (2005). Personnel psychology: Performance evaluation and pay for performance. Annual Review of Psychology, 56, 571–600.
  • Schneider, B., & Bowen, D. E. (1985). Employee and customer perceptions of service in banks: Replication and extension. Journal of Applied Psychology, 70(3), 423–433. https://doi.org/10.1037/0021-9010.70.3.423
  • Schneider, B., Ehrhart, M. G., & Macey, W. H. (2013). Organizational climate and culture. Annual Review of Psychology, 64, 361–388.
  • Schneider, B., Goldstiein, H. W., & Smith, D. B. (1995). The ASA framework: An update. Personnel Psychology, 48(4), 747–773. https://doi.org/10.1111/j.1744-6570.1995.tb01780.x
  • Slemp, G. R. (2017). Job crafting. In L. G. Oades, M. F. Steger, A. Delle Fave, & J. Passmore (Eds.), The Wiley Blackwell handbook of the psychology of positivity and strengths-based approaches at work (pp. 342–365). Wiley.
  • Slemp, G. R., Kern, M. L., Patrick, K. J., & Ryan, R. M. (2018). Leader autonomy support in the workplace: A meta-analytic review. Motivation and Emotion, 42(5), 706–724.
  • Sun, L., Aryee, S., & Law, K. S. (2007). High-performance human resource practices, citizenship behavior, and organizational performance: A relational perspective. Academy of Management Journal, 50(3), 558–577. https://doi.org/10.5465/amj.2007.25525821
  • Van den Broeck, A., Ferris, D. L., Chang, C., & Rosen, C. C. (2016). A review of self-determination theory’s basic psychological needs at work. Journal of Management, 42(5), 1195–1229. https://doi.org/10.1177/0149206316632058
  • van Hooff, M. L. M., & De Pater, I. E. (2019). Daily associations between basic psychological need satisfaction and well-being at work: The moderating role of need strength. Journal of Occupational and Organizational Psychology, 92(4), 1027–1035. https://doi.org/10.1111/joop.12260
  • Van Mierlo, H., Rutte, C. T., Kompier, M. A., & Doorewaard, H. A. (2005). Self-managing team work and psychological well-being: Review of a multilevel research domain. Group & Organization Management, 30(2), 211–235. https://doi.org/10.1177/1059601103257989
  • Vansteenkiste, M., Simons, J., Lens, W., Sheldon, K. M., & Deci, E. L. (2004). Motivating learning, performance, and persistence: The synergistic effects of intrinsic goal contents and autonomy-supportive contexts. Journal of Personality and Social Psychology, 87(2), 246–260.
  • Whitman, D. S., Van Rooy, D. L., & Viswesvaran, C. (2010). Satisfaction, citizenship behaviors, and performance in work units: A meta-analysis of collective construct relations. Personnel Psychology, 63(1), 41–81. https://doi.org/10.1111/j.1744-6570.2009.01162.x
  • Zeijen, M. E., Petrou, P., Bakker, A. B., & Gelderen, B. R. (2020). Dyadic support exchange and work engagement: An episodic test and expansion of self-determination theory. Journal of Occupational and Organizational Psychology, 93(3), 687–711. https://doi.org/10.1111/joop.12311

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.