The purpose of this study is to examine how the presence of a value statement (an informal control) alters the effect of differing financial incentives (a formal control) in an environment consisting of both rewarded and unrewarded tasks. Results show that under fixed pay, the presence of a value statement motivates performance on important but unrewarded discretionary tasks. Conversely, under piece‐rate compensation, value statements negatively influence performance on unrewarded discretionary tasks. In contemporary work environments, where such discretionary tasks are common and important to organisational effectiveness, these results suggest that informal controls can have an important role in performance outcomes.
Accounting & Finance – Wiley
Published: Oct 19, 2021
Keywords: Discretionary task; Incentive compensation schemes; Informal management control systems; Organisational citizenship behaviour; Organisational value statements; Social norm activation