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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.
SCIMA record nr: 158669
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