Pay for performance and work attitudes: The mediating role of employee–organization service value congruence

Abstract

This study examined the mediating effects of employee–organization service value congruence on pay for performance and work attitudes. Using a sample drawn from the hotel industry, we found that when employees perceived a high PFP link they tended to exhibit more positive work attitudes. We also found that the relationship between PFP link and work attitudes was mediated by P–O fit. These findings offer new insights into the important role that reward practices such as PFP play in the alignment of employer–organization service quality values. In doing so, they also pave the way for future contributions in this novel and important area of service value congruence.