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Author: | Mitra, A. Gupta, N. Jenkins, G. Jr |
Title: | A drop in the bucket: when is a pay raise a pay raise? |
Journal: | Journal of Organizational Behavior
1997 : MAR, VOL. 18:2, p. 117-137 |
Index terms: | ORGANIZATIONAL BEHAVIOUR PAY ECONOMICS |
Language: | eng |
Abstract: | Although merit pay continues to receive much theoretical and practical attention , little systematic effort is devoted to determining how large a pay raise must be before employees see it as a pay raise. This study uses psychophysical reasoning and techniques in a sample of 192 student "employees" to establish the size of pay raise thresholds in a relatively controlled setting. Results indicate that, below about the 7 per cent level, increases in pay amounts are unlikely to evoke positive perceptual and attitudinal reactions among employees. |
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