An Examination of the Relationships Among Monetary Incentives, Goal Level, Goal Commitment, and Performance

1992 ◽  
Vol 18 (4) ◽  
pp. 677-693 ◽  
Author(s):  
Patrick M. Wright

This study tested the effects of incentive type, incentive level, and goal level on valence, goal commitment, and performance. Subjects (N=251) worked on a class scheduling task under either piece-rate, hourly, goal attainment bonus, or no-pay conditions, under either high or low amounts of money, and were assigned either easy, moderate, or difficult goals (a 4X2X3 design). Results demonstrated that both the level of valence and valence slope mediated the relationship between incentives and goal commitment. Incentive type, incentive level, and goal level interacted in determining performance, and these effects were not completely mediated by goal commitment.

2020 ◽  
Vol 12 (2) ◽  
pp. 313-326
Author(s):  
Clara Noviana Agustina Indriastuti ◽  
Adriana Marini Purwanto ◽  
Theodorus Radja Ludji

This study used a 2x2 between-subject experiment to examine the relationship between monetary incentives, task complexity and performance. Monetary incentives in this study were applied in two types, piece-rate and fixed-rate, while task complexity was varied in two categories, low and high. Participants’ performance was measured through the completion of tasks assigned. Results of this study indicates no effect of monetary incentive on performance, yet there is a significant effect of task complexity on performance where participants provided with tasks with low complexity showed a significantly higher performance than participants provided with tasks with high complexity. Furthermore, this study finds no interaction between monetary incentives and task complexity on performance. It is implied from this study that monetary incentives were not the main factors that contribute towards employees’ performance in the companies. Besides, task complexity is an important factor to be considered by firms, as it can influence their employees’ performance.  Keywords: Monetary Incentives, Task Complexity, Performance


1997 ◽  
Vol 61 (1) ◽  
pp. 39-50 ◽  
Author(s):  
Steven P. Brown ◽  
William L. Cron ◽  
John W. Slocum

The authors investigate the motivational effects of emotions in a sales force context. The personal stakes that salespeople have in a goal situation triggered anticipation of emotions that result from attaining or failing to attain their performance goal. Positive anticipatory emotions were positively related to volitions and mediated the relationship between personal stakes and volitions. Goal attainment was positively related to positive outcome emotions and negatively related to negative outcome emotions. Goal-directed behavior was positively associated with positive outcome emotions, independently of goal attainment. The findings suggest that emotions are an important driving force behind sales force motivation. The authors discuss the implications for sales management, theory development, and further research.


2021 ◽  
Vol 8 (2) ◽  
pp. 67
Author(s):  
Aulia Azzardina

This study investigates the relationship between motivation and task complexity on performance. Monetary incentives are involved in this study as a moderating variable. The motivation examined in this research is intrinsic and extrinsic motivation. A 2x2 quasi-experiment has been conducted and involving 66 university students. Two and three-way ANOVA are used for hypothetical testing. The result shows that individuals with intrinsic motivation have shown better performance than those with extrinsic motivation. After individuals have faced more complex tasks, they achieved lower scores than those who faced less complex tasks. Prior studies suggested that motivation could be destructed by monetary incentives. However, there is no interaction proof when moderating variable is involved. The relationship between motivation and performance is not influenced by monetary incentives. In line with it, the relationship between task complexity and performance is also not strengthened or weakened by the given monetary incentives information. Thus, monetary incentives failed to influence the relationship between motivation, task complexity and performance.


2013 ◽  
Vol 88 (5) ◽  
pp. 1805-1831 ◽  
Author(s):  
Adam Presslee ◽  
Thomas W. Vance ◽  
R. Alan Webb

ABSTRACT: The use of tangible rewards in the form of non-cash incentives with a monetary value has become increasingly common in many organizations (Peltier et al. 2005). Despite their use, the behavioral and performance effects of tangible rewards have received minimal research attention. Relative to cash rewards, we predict tangible rewards will have positive effects on goal commitment and performance but will lead employees to set easier goals, which will negatively affect performance. The overall performance impact of tangible rewards will depend on the relative strength of these competing effects. We conduct a quasi-experiment at five call centers of a financial services company. Employees at two locations earned cash rewards for goal attainment while employees at three locations earned points, with equivalent retail value to cash rewards, redeemable for merchandise. Results show that cash rewards lead to better performance through their effects on the difficulty of the goals employees selected. Implications for theory and practice are discussed. Data Availability: The data used in this study are available upon request.


1997 ◽  
Vol 23 (4) ◽  
pp. 541-559 ◽  
Author(s):  
Thomas W. Lee ◽  
Edwin A. Locke ◽  
Soo H. Phan

This study was designed to replicate conceptually and to explain the goal-level vs. incentive-type interaction reported by Mowen, Middlemist, and Luther (1981) based on goal setting and social cognitive theories. Mowen et al. found that subjects performed more poorly with hard goals than medium goals under a bonus pay system, the opposite of what was found for a piece-rate system. In the present study, an hourly pay condition was added. Mowen et al.‘s interaction was replicated using a two-trial design in which subjects could obtain feedback about their ability to attain the incentive bonuses between trials. The experimental effects were completely mediated by personal goals and self-efficacy. Goal commitment was related to performance, but did not mediate the experimental conditions. The implications for the design of incentive systems are discussed.


1992 ◽  
Vol 18 (3) ◽  
pp. 595-615 ◽  
Author(s):  
J. C. Wofford ◽  
Vicki L. Goodwin ◽  
Steven Premack

Meta-analyses were conducted to examine the antecedents of personal goal level, and the antecedents and consequences of goal commitment based on 78 goal-setting studies. Meta-analyses of the antecedents of personal goal level indicated that prior performance and ability were significantly related to personal goals whereas knowledge of results had a marginally significant relationship with personal goal level. The relationships of three antecedent variables with goal commitment were found to be statistically significant (i.e., self-efficacy, expectancy of goal attainment, and task difficulty), whereas task complexity had a marginally significant relationship with goal commitment. The results of the meta-analyses on the consequences of goal commitment showed goal commitment to significantly affect goal achievement. A model was developed that integrated the results of the meta-analyses with conceptually derived variables and relationships.


2018 ◽  
Vol 62 (2) ◽  
pp. 97-107 ◽  
Author(s):  
Nina Keith

Abstract. The positive effects of goal setting on motivation and performance are among the most established findings of industrial–organizational psychology. Accordingly, goal setting is a common management technique. Lately, however, potential negative effects of goal-setting, for example, on unethical behavior, are increasingly being discussed. This research replicates and extends a laboratory experiment conducted in the United States. In one of three goal conditions (do-your-best goals, consistently high goals, increasingly high goals), 101 participants worked on a search task in five rounds. Half of them (transparency yes/no) were informed at the outset about goal development. We did not find the expected effects on unethical behavior but medium-to-large effects on subjective variables: Perceived fairness of goals and goal commitment were least favorable in the increasing-goal condition, particularly in later goal rounds. Results indicate that when designing goal-setting interventions, organizations may consider potential undesirable long-term effects.


2010 ◽  
Vol 15 (2) ◽  
pp. 121-131 ◽  
Author(s):  
Remus Ilies ◽  
Timothy A. Judge ◽  
David T. Wagner

This paper focuses on explaining how individuals set goals on multiple performance episodes, in the context of performance feedback comparing their performance on each episode with their respective goal. The proposed model was tested through a longitudinal study of 493 university students’ actual goals and performance on business school exams. Results of a structural equation model supported the proposed conceptual model in which self-efficacy and emotional reactions to feedback mediate the relationship between feedback and subsequent goals. In addition, as expected, participants’ standing on a dispositional measure of behavioral inhibition influenced the strength of their emotional reactions to negative feedback.


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