Performance-contingent Rewards Research Articles

Efficiency wages, managerial discretion, and the fear of bankruptcy

In the absence of complete contracts, a firm's shareholders may be unable to credibly commit to honor performance-contingent rewards to workers. However, it is managers who usually administer compensation contracts and ensure that implicit commitments are fulfilled. The separation of ownership and control can increase the value of labor's specific investments in the firm. Departing from previous work on delegation, I allow managers to transfer wealth from shareholders to workers. This creates a beneficial role for debt and a fear of bankruptcy that ensures managers take an ‘appropriate’ view of the effect that the payments they make to workers have on the financial health of the firm.

Effect of Contingency and Timing of Reward on Intrinsic Motivation.

The effects of contingency and timing of reward on intrinsic motivation for subsequent task performance were investigated in 65 young Indian adults. After completing the mandatory problem session, the subjects spent a significantly greater amount of free activity time solving puzzles under performance-contingent reward conditions, followed by task-contingent reward with feedback and task-contingent reward conditions, respectively. The performance on problem solving tasks during a free activity period yielded a significant effect of reward contingency, implying greater intrinsic motivation under performance-contingent reward, followed by task-contingent reward with feedback and task-contingent reward conditions, respectively. The effect of timing of reward was not significant. The roles of challenge and competence information facilitated intrinsic motivation for task performance.

内発的動機づけに及ぼす外的評価の予告と報酬予期の効果

The purpose of this study was to investigate the effects of the instruction of evaluation (Experiment1) and the expectation of extrinsic rewards (Experiment2) on children's intrinsic motivation.In Exp.1, subjects were divided into evaluative and non-evaluative instruction groups.The former group was instructed to add the outcome to their academic achievement.After doing tasks in both groups, the method of free task choice (Sakurai, 1984a) was conducted.Four kinds of tasks were constructed in two dimensions: difficulty (easy-difficult) and curiosity (old-new). Evaluative instruction group preferred new tasks while the other group had a tendency to prefer difficult tasks.Between the groups, there was significant preference in curiosity of tasks but no significant preference in difficulty. In Exp.2, subjects were divided into expected and non-expected reward groups. The former group was instructed to give the performance-contingent rewards during doing tasks.In the situations of free task choice, both groups preferred difficult tasks, and only expected reward group preferred new ones.Between the groups, there was significant preference in curiosity of tasks but no significant preference in difficulty.Most of these results supported the Self Evaluative Motivation (SEM) Model proposed by Sakurai (1984a).

Effect of Reward Contingency on Intrinsic Motivation

Abstract The effects of type of task and type of reward contingency on intrinsic motivation for subsequent task performance were investigated. The sample consisted of 50 young Indian adults. The results showed a significantly greater amount of free choice time spent on a heuristic task rather than an algorithmic task. The verbal measures of intrinsic motivation yielded a significant effect of reward contingency with greater intrinsic motivation under performance-contingent reward, followed by task-contingent and no-reward conditions, respectively. The results support self-determination and competence processes as important mediators of intrinsic motivation.

Increasing Children's Interest through Performance-Contingent Reward

It was hypothesized that rewards made contingent on performance quality would enhance intrinsic motivation, since this type of contingency would provide information about task competence. Children received rewards for successfully (performance-contingent) or simply (task-contingent) completing a series of maze puzzles under conditions that made the reward contingency more or less salient. Subsequent to this manipulation, children were given the opportunity to play with additional maze puzzles or alternative activities during a 5-minute free-choice session, in which they were observed unobtrusively. In general, performance-contingent rewards enhanced children's interest relative to task-contingent rewards and a no-reward control, and these effects were more pronounced when the contingencies were made salient. Sex differences emerged, indicating that performance-contingent rewards were more effective in enhancing the intrinsic motivation of boys. The pattern of data obtained suggests ways in which reward can either facilitate or hinder intrinsic motivation, depending on the reward contingency employed.

TASK PERFORMANCE, PERCEIVED COMPETENCE, AND ATTRIBUTED CAUSES OF PERFORMANCE AS DETERMINANTS OF INTRINSIC MOTIVATION.

Volunteer subjects engaged in a task that was highly intrinsically motivating under three conditions: no pay, fixed reward, and performance-contingent reward. Results indicated that extrinsic rewar...

Productivity improvement in a purchasing division: The impact of a performance contingent reward system

A performance contingent reward system was developed for small purchase buyers and supply clerks in a purchase division of a naval shipyard. The rewards were financial incentives provided to individual civil service employees who performed above standard. A description of the system and an evaluation of its effectiveness in increasing productivity and saving costs are provided. Results show that the system increased productivity and reduced costs substantially.

A process analysis of the effects of performance-contingent rewards on intrinsic motivation

In this study, the effects of performance-contingent rewards on intrinsic motivation were examined in comparison to no-reward controls receiving identical performance feedback. A path analytic process analysis was conducted to examine the mediation of reward effects on subsequent task interest. It was hypothesized that competence valuation, or the personal importance of doing well, would be an important mediator of interest in situations where performance feedback was available. Rewards were predicted to affect interest by influencing an individual's valuation of competence, and by altering the competence valuation mediation process. In addition, achievement orientation was hypothesized to interact with reward in affecting importance and the mediation process. Prior to performing an interesting puzzle, high school students were offered a performance-contingent reward, and then indicated how personally important it was to do well. After doing three puzzles, all subjects received positive feedback regarding their performance. Multiple regression analyses indicated that importance was affected by the experimental variables, and had a positive causal impact on subsequent intrinsic motivation. It was found that the promise of performance-contingent reward positively affected importance for low achievers relative to high achievers, and that the mediation of subsequent intrinsic interest by importance differed according to reward by achievement combinations. Additionally, a direct effect revealed that performance-contingent rewards significantly enhanced interest, relative to no-reward controls receiving identical performance feedback.

Enhancing Self-Efficacy and Achievement Through Rewards and Goals: Motivational and Informational Effects

This experiment compared the effects of performance-contingent rewards and proximal goals on children's task motivation, self-efficacy, and skillful performance. Children deficient in division skills received division instruction and solved problems. Some children were offered rewards based on their actual performances (rewards only); others pursued proximal performance goals (goals only); and children in a third condition received rewards and goals (rewards + goals). Although the three experimental treatments led to equally rapid problem solving during training, combining rewards with goals resulted in the highest self-efficacy and division performance. Future research should investigate whether proximal goals and performance-contingent rewards enhance self-efficacy through a common informational process. Implications for teaching are discussed.

The effects of reward on tutor's behaviors in a cross-age tutoring context

Utilizing a cross-age tutoring context, this study examined the effects of reward on the teaching behaviors of the tutor, the tutor's subsequent motivation to continue to teach during a free choice period, and the social interaction between a tutor and a tutee. Third-grade boys and girls ( n = 96) who exhibited a positive reinforcement style were asked to teach six addition problems to a first-grade boy or girl ( n = 96). The children were randomly assigned to pairs and to one of the three reward conditions. In the performance-contingent reward condition, the tutors were promised a toy if the first-grader learned all of the arithmetic problems. In the noncontingent reward condition, the tutors were promised a toy for teaching the first-grader. In the no reward condition, the tutors taught the first-grader without promise of a toy. The results indicated that the social interaction was rated lower for the children in the performance-contingent group and that the tutors in this group spent less time teaching during the free choice period. However, neither the tutor's teaching style nor the tutee's post-test performance was adversely affected by the reward.

The Dissonance Model of Participative Budgeting: An Empirical Exploration

Participative budgeting has been proposed as a technique which can be used both to enhance participants' attitudes toward the budget and to induce achievement of budgeted objectives. The available evidence, however, seems to indicate that while participation in budgeting enhances attitudes toward the budget and various other attitudes of participants, it does not always result in increased performance or motivation to perform.1 The results of this study indicate that participative budgeting which allowed participants to perceive themselves as having exercised freedom of decision in the setting of difficult-to-achieve budgets yielded both increased commitment toward budget achievement and increased performance, even in the absence of a performance-contingent reward structure. Section 2 contains a brief summary of the related accounting literature. In section 3, I provide an overview of the theory of cognitive dissonance and its application within a model of participative budgeting. Section 4 presents a summary of the experiment, results of postexperimental manipulation checks, and the experimental hypotheses, followed by a discussion of the experimental results (section 5). The last section contains a discussion of the limitations and implications of the results.

Reward contingencies and the development of children's skills and self-efficacy.

This experiment tested the hypothesis that rewards offered for performance attainments during competency development promote children's arithmetic skills and percepts of self-efficacy. Children received didactic instruction in division operations and were offered rewards contingent on their actual performance, rewards for simply participating, or no rewards. Results showed that performance-contingent rewards led to the highest levels of division skill and self-efficacy, as well as the most rapid problem solving during the training program. In contrast, offering rewards for participation resulted in no benefits compared with offering no rewards. The findings suggest caution in how rewards are distributed in educational contexts.

Effects of Leader Contingent and Noncontingent Reward and Punishment Behaviors on Subordinate Performance and Satisfaction.

This study investigated the nature of the relationships between leader reward and punishment behaviors and subordinate performance and satisfaction. Only performance-contingent reward behavior was found to affect subordinate performance significantly. Positive relationships were found between leader contingent reward behavior and employee satisfaction. Contingent punishment had no effects on subordinate performance or satisfaction.

School Experience, Reward Characteristics, and Intrinsic Motivation

PALLAK, SUZANNE R.; COSTOMIRIS, STEVEN; SROKA, SUSAN; and PITTMAN, THANE S. School Experience, Reward Characteristics, and Intrinsic Motivation. CHILD DEVELOPMENT, 1982, 53, 1382-1391. The present experiment was conducted to address variations in prior experience with reward and some inconsistencies in previous investigations comparing verbal and symbolic rewards. 5-7-year-old children attending 4 private schools (half of which use symbolic rewards as marks of achievement) saw a videotape that either created the expectation of a performancecontingent reward or did not mention rewards. Except for children in a no-reward control condition, all children were rewarded after 5 min, half with praise (verbal reward) and half with a Good Player Award (symbolic reward). A triple-order interaction was obtained such that children attending schools that did not use symbolic rewards to mark achievement were less likely to draw during the free-play period when given an expected symbolic reward, but were more likely to draw when given a verbal reward. Children attending schools that did not use symbolic rewards to mark achievement, however, did not react differentially to symbolic and verbal rewards but instead were more likely to draw when the reward was expected than when it was unexpected. The nature of prior experience with rewards and reward contingency may affect the relative salience of informational and controlling properties and thereby enhance or undermine intrinsic motivation.

Cognitive evaluation theory: An experimental test of processes and outcomes

Cognitive Evaluation Theory has been proposed as a viable theoretical framework for explaining the detrimental effects of performance contingent rewards on intrinsically motivated behaviors. A review of the literature suggested that this theory had not been adequately tested. A field experiment was undertaken to do this. The results did not support the theory.

Effects of Withdrawal of a Performance-Contingent Reward on Supervisory Influence and Power

A field experiment was conducted to investigate effects of removal of a performance-contingent reward on subordinates’ perceptions of their supervisors’ sources of influence. A significant increase...

Effects of Withdrawal of a Performance-Contingent Reward on Supervisory Influence and Power.

A field experiment was conducted to investigate effects of removal of a performance-contingent reward on subordinates’ perceptions of their supervisors’ sources of influence. A significant increase...

Effects of Leader Reward and Punishment Behaviors on Subordinate Performance and Attitudes.

This study investigated the relationship between leader contingent and non-contingent reward and punishment behaviors and employee performance and attitudes. Performance-contingent reward behavior was found to affect subordinate performance, satisfaction, and attraction to the supervisor, particularly among high performers. Non-contingent reward behavior was also associated with employee satisfaction and attraction, but primarily among low performers. The relationship between both contingent and non-contingent punishment behaviors and employee performance and attitudes were generally negative.

Increasing Intrinsic Motivation with Performance-Contingent Reward

Summary The effects of a contingent reward program on employees' performance and intrinsic motivation were investigated in an organizational setting. Data from 186 employees tested before and after the introduction of a bonus plan support the hypotheses that a performance-contingent bonus increases both performance and intrinsic motivation because it increases the employees' perception of personal control over performance and feedback from the job.

The effect of earlier experience and reward contingencies on intrinsic motivation

The effects of task-contingent and performance-contingent extrinsic rewards upon subsequent intrinsic motivation are compared. Intrinsic motivation is measured by behavioral observation in a free time period and by rating scales. The results show, as expected, a higher rating of intrinsic motivation in the performance-contingent reward condition. The study further compares strength of intrinsic motivation in one- and two-session conditions. As hypothesized, a two-session condition, in which the subjects have a preexperience with the task without reward administration, leads to a higher rating of intrinsic motivation than a one-session condition without such a preexperience. The behavioral measure of intrinsic motivation is not significantly affected by the conditions. A post hoc analysis of the data indicates that there may be a different effect of extrinsic rewards on behavioral measures and on rating scale measures of intrinsic motivation.