Performance-enhancing practices include Human Resource Management practices that are intended to increase employee performance, such as employee monitoring, individual pay-for-performance plans, and performance appraisals (Shaw et al., 2009). In this paper, we focus on the pay system in the organization. We focus specifically on the role of pay systems because of the paucity of research investigating how pay practices may result in interpersonal forms of conflict. This paucity continues to exist despite speculation in prior research that reward structures may contribute to workplace bullying (e.g., Salin, 2003). Because of the important direct role that pay has on employee behavior (Rynes et al., 2004; Sweins & Kalmi, 2008), we believe that investigating the role of pay practices in stimulating interpersonal forms of conflict can be particularly fruitful.