Rewarding employee performance: line managers' values, beliefs and perspectives

This article explores managerial perceptions of the effectiveness and fairn ess of individual performance-related pay schemes. It draws upon findings f rom a two-part study of middle managers' interpretation and application of performance-related pay processes in a variety of organizational contexts. The analysis reveals that middle managers all too often do not share the pr inciples or the stated objectives of the schemes they are required to opera tionalize. It concludes that the importance of managerial values and belief s about rewarding individual contribution has been an overlooked and undere stimated dimension in the design and application of individual performance- related pay schemes (IPRP) despite the significance of the manager's role i n their organizational effectiveness.