| Collective Sorting Theory: How Team Reward Systems Influence Multiple Sorting Processes in Teams |
Received:October 14, 2017 Revised:October 15, 2017 |
Key Words: compensation, sorting, team pay-for-performance, helping behavior, team performance |
| Author Name | Affiliation | | Grace Ching Chi Ho* | The Hong Kong Polytechnic University | | David DeGeest | The Hong Kong Polytechnic University | | Feng Bai | The Hong Kong Polytechnic University |
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Abstract: |
| Team pay-for-performance (PFP) systems benefit team processes and performance for agile work teams with fluid membership. In this study, we integrate economic sorting theory into social interdependence theory to develop a novel conceptual framework called collective sorting theory. This framework predicts that different team reward structures influence team performance via multiple, independent sorting effects, or changes to the team’s composition. Specifically, we propose that equity-based allocations will sort for highly competent members, equality-based allocations will sort for cooperative members, and hybrid (equity and equality) allocations will sort for both competent and cooperative members. Theoretical contributions and practical implications are discussed. |
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