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Overpayment: Perceived qualifications and financial compensation
Author(s) -
Wilke Henk,
Steur Theo
Publication year - 1972
Publication title -
european journal of social psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.609
H-Index - 111
eISSN - 1099-0992
pISSN - 0046-2772
DOI - 10.1002/ejsp.2420020305
Subject(s) - expectancy theory , psychology , equity theory , social psychology , equity (law) , payment , compensation (psychology) , financial compensation , personality , finance , economics , economic justice , microeconomics , political science , law
In this study expectancy and equity theory were compared. An experiment was carried out on the effect of overpayment. Overpayment was manipulated by varying perceived input (perceived qualifications) and received outcome (financial compensation). The experiment consisted of a 2 × 3 design: two levels of payment (4 guilders p.h. and 8 guilders p.h.) and three levels of perceived qualifications (high, medium, low). Sixty‐six subjects were hired through the students placement service to decode personality questionnaires. Overpayment by manipulation of monetary rewards did not lead to greater production, as was hypothesized by Adams' equity theory (1965). As far m overpayment has been manipulated by perceived qualifications for the job the data confirmed equity theory. Several other theories (e.g. expectancy theory: Lawler, 1968b) can explain both results.