Teams are an important part of most organizations. As such, it is necessary that organizational leaders make a number of decisions regarding how to pay teams. In this article, prominent themes in the teams literature and the pay-for-performance literature are integrated to develop a framework of team pay-for-performance effectiveness. Using this framework as a guide, the literature on team pay-for-performance is reviewed. Important dimensions of the team pay-for-performance construct are identified, and mediating paths between these dimensions and team outcomes are clarified. This integration leads to identification and discussion of valuable areas for future work.
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