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• PfP motivates certain individuals:
- Motivating for income maximizers if relationship between performance and pay is seen as acceptable
- Motivation for status oriented people if pay effects their status positively
• PfP demotivates other personality types
- Loyals are getting demotivated – pay is interpreted as signal that
performance is not seen as sufficient, reduction of self-esteem
- Formalists perceive PfP as inappropriate outer control
- Self-controlled people see their own interpretation of their tasks
questioned
•  PfP only potentially motivates two types but only under certain
conditions: income maximizers if they accept the function between pay and performance and status oriented ones if income makes a difference for their status