The Relation Between Financial Incentives, Motivation, and Performance

2017 ◽  
Vol 16 (2) ◽  
pp. 61-76 ◽  
Author(s):  
Anaïs Thibault Landry ◽  
Marylène Gagné ◽  
Jacques Forest ◽  
Sylvie Guerrero ◽  
Michel Séguin ◽  
...  

Abstract. To this day, researchers are debating the adequacy of using financial incentives to bolster performance in work settings. Our goal was to contribute to current understanding by considering the moderating role of distributive justice in the relation between financial incentives, motivation, and performance. Based on self-determination theory, we hypothesized that when bonuses are fairly distributed, using financial incentives makes employees feel more competent and autonomous, which in turn fosters greater autonomous motivation and lower controlled motivation, and better work performance. Results from path analyses in three samples supported our hypotheses, suggesting that the effect of financial incentives is contextual, and that compensation plans using financial incentives and bonuses can be effective when properly managed.

2021 ◽  
Vol 12 ◽  
Author(s):  
Feifei Ren ◽  
Qian Zhang ◽  
Xing Wei

This study applied self-determination theory (SDT) to investigate the relationships between work motivation and work behaviour of Chinese employees and the moderating role of financial stress. Data were obtained from 245 employees of five organisations in China using a convenience sampling technique. The results indicated that autonomous motivation positively predicted work performance and innovative work behaviour, while controlled motivation had a positive effect only on work performance of employees. In addition, financial stress moderated the relationships between autonomous motivation and work performance and innovative work behaviour of employees. Specifically, the beneficial effect of autonomous motivation on work performance and innovative work behaviour disappeared when financial stress was high. The findings of the present study supported cultural similarities in the positive role of autonomous motivation and showed cultural differences in the role of controlled motivation. The implications of this study are also discussed.


Author(s):  
Marzena Stor ◽  
Łukasz Haromszeki

The main goal of the paper is to identify, analyze, and compare the relationships between the activities in the field of HRM and performance results of MNCs in Eastern and Western Europe with a view to the value ascribed to human resources as a strategic competitive factor, HRM centralization practices and the importance of HRM knowledge flows between the headquarters (HQ) and their subsidiaries. The research sample covered 200 HQs of MNCs and their local subsidiaries. The empirical research results show that there are some identifiable and statistically significant differences between MNCs operating in Eastern and Western Europe within the range of relationships defined above. Our study, therefore,represents an original effort at examining these relationships.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shpresim Domi ◽  
Fabjola Domi

Purpose The purpose of this paper is to examine the interplay of skill-enhancing human resources practices, customer orientation (CO) and tourism small- and medium-sized enterprises (SMEs) performance indicators. Design/methodology/approach Data for 194 valid cases are gathered through face-to-face techniques in Albanian tourism SMEs. Structural equation modeling is implemented to analyze data and test the hypothesis proposed. Findings Overall, both skill-enhancing human resources (HR) practices (i.e. recruitment/selection and training) are not associated with SMEs performance. Results suggest that using HR selection/recruitment practices are not associated to SME’s CO. Contrary, implementing skill-enhancing HR training practices is significant for SMEs strategy to focus and address customers’ wants and needs. Finally, it was found that the CO mediates the relationship between skill-enhancing HR training practices and performance, but this was not true on the skill-enhancing HR recruitment/selection practices-performance relationship. Originality/value This study makes contributions by further informing the debate about the direct and indirect link between skill-enhancing HR practices and performance. Additionally, it examines the precise role of the skill-enhancing HR practice on SMEs’ culture and or strategy to create value for customers.


1993 ◽  
Vol 19 (1) ◽  
pp. 147-161 ◽  
Author(s):  
Thomas A. Wright ◽  
Douglas G. Bonett

The present study examined growth coping, work performance, work satisfaction and organizational tenure as predictors of voluntary organizational turnover for 93 human services supervisory personnel. This study represents a further theoretical development and empirical test of the role played by employee growth coping on whether an employee stays (No Turnover) or leaves (Turnover) their organization. Additionally, clarification of the relationship between work performance and withdrawal is provided. Future research directions are introduced.


2017 ◽  
Vol 13 (1) ◽  
pp. 36-46
Author(s):  
Karen Watkins-Fassler

This paper analyzes if changes in CEO remuneration and the execution of CEO stock options impact firm performance, under an emerging market context. Data is obtained from 88 non-financial companies listed in the Mexican Stock Exchange (2001-2012). A dynamic panel specification is employed, and regressions are run through the Generalized Method of Moments. Some evidence is found on the negative relationship between flat monetary incentives and Mexican firm performance, specifically for normal times. In addition, financial incentives based on results (particularly CEO stock options) do not imply higher firm performance. Results suggest that companies in particular contexts should move towards the development of CEOs, more than promoting mostly monetary incentives for boosting firm performance. Companies operating in Mexico will gain from hiring intrinsically motivated CEOs, together with testing different extrinsic rewards (neither flat nor stock options) in order to attain additive effects on intrinsic motivation.


2018 ◽  
Vol 41 (2) ◽  
pp. 186-201 ◽  
Author(s):  
Fatih Çetin ◽  
Duysal Aşkun

Purpose Today, organizations work hard to improve the motivation of their employees and related knowledge, skills and abilities to enhance work performance. Among many other variables, self-efficacy proved to have an influential role in work performance. The main purpose of the current study is to investigate the role of occupational self-efficacy on work performance through intrinsic motivation by using a longitudinal analysis. Design/methodology/approach Participants were 76 employees from diverse organizations operating in an organized industrial region in Turkey. Participants filled in a weekly questionnaire during ten consecutive weeks. Findings Results of multilevel analyses confirmed our hypotheses by showing that occupational self-efficacy and intrinsic motivation have a significant influential role over work performance, and intrinsic motivation serve as a partial mediator in this relationship. Originality/value The study findings also reveal important information for organizational and managerial practices to improve employee motivation and performance.


2019 ◽  
Vol 34 (6) ◽  
pp. 415-428 ◽  
Author(s):  
Abira Reizer ◽  
Yael Brender-Ilan ◽  
Zachary Sheaffer

Purpose Numerous studies have focused on the effect of motivation on performance in the workplace. The purpose of this paper is to evaluate the somewhat overlooked role of positive and negative emotions as potential mediators of this critical association. Design/methodology/approach The longitudinal study employed multilevel modeling for assessing the effects of motivation, emotions and work satisfaction on job performance. In total, 116 respondents provided 1,044 responses at nine consecutive measurement points. Findings Findings indicated that positive emotions and job satisfaction mediate the positive association between autonomous motivation and performance. Concurrently, negative emotions and decreased job satisfaction mediated the negative associations between controlled motivation and job performance. Research limitations/implications The results address only the within-subject and between-subject analysis of temporal variations in emotions and behavior. Future studies can include higher levels of analysis, such as group, team and organizational contexts. Originality/value This research contributes to self-determination theory by highlighting the role of emotions in understanding how motivation shapes workplace performance.


2019 ◽  
Vol 14 (1) ◽  
pp. 127-140 ◽  
Author(s):  
Nadine El Masri ◽  
Abubakr Suliman

AbstractThis paper aims to provide insight into talent management and employee recognition variables, in an effort to understand if these management practices are, in a way, implemented in the Research Institutions in Qatar. It also aims to examine the link of these two constructs to employee performance and to suggest a pathway to improve the current practices, if any, in order to enhance the work performance. The sample of the study consisted of 180 full time employees who were randomly selected and surveyed using an online personalized questionnaire. The results of the empirical research uncover that talent management and employee recognition can significantly affect the level of employee performance, as well contributing to the organizational success and positioning. This study also found that talent management and employee recognition are interrelated variables that affect employee performance. Talent Management and employee performance are seen as strategic tools to implement strategic objectives and to enhance employees and organization’s performance. The study concludes with a set of recommendations for both practitioners and researchers working in Qatar and beyond. The results of the study emphasize the importance of managing employee recognition in shaping work performance. It seems to be individuals’ need for recognition, esteem and social status continues to be a higher order need irrespective of time and context. This paper is the first paper in Qatar and the Middle East that examines the role of talent management and employee recognition in shaping employee performance in the context of research institutions.


2001 ◽  
Vol 7 (1) ◽  
pp. 29-46 ◽  
Author(s):  
KAREN SPARCK JONES

System evaluation has mattered since research on automatic language and information processing began. However, the (D)ARPA conferences have raised the stakes substantially in requiring and delivering systematic evaluations and in sustaining these through long term programmes; and it has been claimed that this has both significantly raised task performance, as defined by appropriate effectiveness measures, and promoted relevant engineering development. These controlled laboratory evaluations have made very strong assumptions about the task context. The paper examines these assumptions for six task areas, considers their impact on evaluation and performance results, and argues that for current tasks of interest, e.g. summarising, it is now essential to play down the present narrowly-defined performance measures in order to address the task context, and specifically the role of the human participant in the task, so that new measures, of larger value, can be developed and applied.


2014 ◽  
Vol 1 (2) ◽  
pp. 135-151
Author(s):  
Shamala Kumar ◽  
Hasini Gunawardana

Social achievement goals are introduced as useful in understanding the motivation of sales people. Further, although past research has indicated that avoidance based achievement goals are maladaptive, recent evidence suggests they are less harmful or may even be helpful in collectivist cultural contexts. Yet, this research has not been extended to work settings. The study tests the validity of social goals and the nature of avoidance based goals in predicting sales outcomes in Sri Lanka. Salespeople in a large organization were surveyed to examine their motivational goals and performance. Results indicated that social achievement goals were predictive of performance and that avoidance based social achievement goals were positively related or unrelated to sales performance. The findings highlight social achievement goals as useful to understanding the behaviour and motivation of salespeople and suggest that regional variations in culture may require motivational programmes that are very different in nature.


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