PEER-BASED REWARD AND INDIVIDUAL PERFORMANCE: A FIELD EXAMINATION.
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This study examines the utility of peer-based reward as an alternative compensation strategy. Specifically, we investigate whether individual performance increases when employees perceive that their organizational rewards are primarily based on peer recommendations. We also examine whether peer-based reward interacts with the individual's level of extraversion to affect individual performance. We test these hypotheses using a field sample of 279 individuals working in groups at a manufacturing site. Results obtained from hierarchical linear modeling analysis support our hypotheses. We discuss the implications of our findings for theory, practice, and future research.