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Motivating unrewarded task performance: The dual effects of incentives and an organisational value statement in a discretionary task setting

Motivating unrewarded task performance: The dual effects of incentives and an organisational... 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Accounting & Finance Wiley

Motivating unrewarded task performance: The dual effects of incentives and an organisational value statement in a discretionary task setting

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Publisher
Wiley
Copyright
Accounting and Finance © 2021 Accounting and Finance Association of Australia and New Zealand
ISSN
0810-5391
eISSN
1467-629X
DOI
10.1111/acfi.12870
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

Accounting & FinanceWiley

Published: Oct 19, 2021

Keywords: Discretionary task; Incentive compensation schemes; Informal management control systems; Organisational citizenship behaviour; Organisational value statements; Social norm activation

References