Research on the Pay for Performance : Questionnaire Survey and Experimental Analysis

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The purpose of this research is to quantitatively investigate the actual effect and function of"the pay for performance"management in Japanese firms. Our investigation methods are questionnaire survey and experiments. The former survey revealed what indexes is used to evaluate the workers, how those indexes are utilized to reward them, and how much the resulting differences in payments are. Regarding the later experimental analysis, we confirm that workers receive a right incentive to invest their efforts into the firm specific training if they are offered a chance of getting promoted to the more productive job with the higher wage. In addition, we have run a preliminary experiment on workers' choice between their own effort and help effort within the context of multi-task in a team production.