Scholion.ai

Fair or Foul?: The Effects of External, Internal, and Employee Equity on Changes in Performance of Major League Baseball Players

Steve Werner, Neal P. Mero

Human Relations · 1999 · Volume 52 · Issue 10

DOI: 10.1177/001872679905201004

Abstract

We propose six hypotheses that relate employee, internal, and external inequities to changes in performance. We test these hypotheses with a sample of 362 Major League Baseball players. The findings showed that overpayment (as measured by actual employee and external inequities) is a significant predictor of positive performance changes, underpayment is a significant predictor of negative performance changes, and employee equity is a greater predictor of change in performance than internal equity.

Keywords

equity, compensatio, overpayment, pay, performance

Enable JavaScript for citation tools and additional paper interactions.