Abstract

Based on organizational control perspective, the basis for pay is recognized as some kinds of control mechanism. After reviewing the relevant literature, we got three categories of basis for pay, including performance-based pay, job-based pay and skill-based pay. And these three bases for pay have output control, behavior control and input control functions respectively.
By integrating organizational control and agency theory approach, we got three dimensions for performance information, including outcome measurability, knowledge of transformation process, and behavior observability. And we built a model of relationship between performance information and basis for pay. We found agency theory was more predictive than organizational control theory. Besides, outcome measurability has positive relationships with performance-based pay, knowledge of transformation process and behavior observability also positively related to job-based pay, and negatively related to skill-based pay.