Interdependence and fit in team performance management

Purpose – To evaluate a proposed prescriptive model for the design of effective combinations of performance goals and pay‐for‐performance plans for the performance management of teams.Design/methodology/approach – The idea underlying the model – in which task, goal, and reward interdependence and their fit play a dominant role – is that a pay‐for‐performance plan should support the team goals and the goals of individual team members as well as support the way in which team members need to cooperate. To obtain a first notion on the model's validity, it was applied to evaluate a pay‐for‐performance plan for management teams at a large IT company. This evaluation consisted of an in‐depth study of three management teams, using a case study methodology.Findings – Combinations of fit among type of team, performance goals, and pay‐for‐performance plan (established by a fit between the interdependence constructs and/or by an overlap in the content of the goal and pay indicators) are more effective than combinatio...

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