Wording and Saliency Matter: The Impact of Incentive System and Organizational Value Statement on Employees' Performance

2019 ◽  
Vol 32 (1) ◽  
pp. 101-118 ◽  
Author(s):  
Kazeem O. Akinyele ◽  
Vicky Arnold ◽  
Steve G. Sutton

ABSTRACT This study extends recent research on the interaction of formal and informal controls that may create divergence between economic self-interest and social norms consistent with organizational belongingness. We use a sequence of two experiments to explore the interactive effects of performance incentives and a contemporary value statement promoting organizational belongingness. Experiment 1 focuses on the moderating effect of a general value statement, showing that a value statement increases (decreases) productivity associated with fixed pay (piece-rate) incentives. Experiment 2 further extends the work on value statements by reinforcing the value statement to increase the statement's saliency with employees. The results of the second experiment confirm that enhancing the saliency of the value statement through active delivery increases its moderating effect on productivity. On an overall basis, the results support our theorized disordinal interaction between formal and informal controls. Most notably, a value statement enhances productivity when incentivizing employees using fixed pay.

2020 ◽  
Vol 19 (12) ◽  
pp. 2225-2252
Author(s):  
E.V. Popov ◽  
V.L. Simonova ◽  
O.V. Komarova ◽  
S.S. Kaigorodova

Subject. The emergence of new ways of interaction between sellers and buyers, the formation of new sales channels and product promotion based on the use of digital economy tools is at the heart of improving the business processes. Social networks became a tool for development; their rapid growth necessitates theoretical understanding and identification of potential application in enterprise's business process digitalization. Objectives. We explore the role of social media in the digitalization of business processes, systematize the impact of social networks on business processes of enterprises in the digital economy. Methods. The theoretical and methodological analysis of social networks as a tool for digitalization of company's business processes rests on the content analysis of domestic and foreign scientific studies, comparison, generalization and systematization. Results. We highlight the key effects of the impact of social networks on the business processes of the company; show that the digitalization of business processes should be considered in the context of a value-based approach, aimed at creating a value through the algorithmization of company operations. We determine that social networks are one of the most important tools for digitalization of company's business processes, as they have a high organizational and management potential. We also systematize the effects of social media on company's business processes. Conclusions. We present theoretical provisions of the impact of social networks on business processes of enterprises, which will enable to model and organize ideas about the development of digital ecosystems and the formation of business models.


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