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Professor Fessler

Discussion of Experimental Evidence on the Links among Monetary Incentives, Task Attractiveness, and Task Performance Nicholas J. Fessler Presenter: Shahriar M. Saadullah. Professor Fessler. Nick the Musician. Research Question. Is there a relationship between Monetary Incentives a nd

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Professor Fessler

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  1. Discussion ofExperimental Evidence on the Links among Monetary Incentives, Task Attractiveness, and Task Performance Nicholas J. FesslerPresenter: Shahriar M. Saadullah

  2. Professor Fessler

  3. Nick the Musician

  4. Research Question Is there a relationship between Monetary Incentives and Task Attractiveness & Performance ?

  5. Justification for the Study Prior Literature Shows • Incentive-based compensation improves utility • Employees derive utility from work activities • Most positive experiences come from work not play However, prior research didn’t include strong test of links among • Incentives • Task Attractiveness & • Performance

  6. Hypothesis 1

  7. Hypotheses 2 & 3

  8. The Experiment

  9. The Experiment

  10. Results

  11. Results

  12. Additional Experiment with Simpler Task • Performance was much better • Was perceived as an easier task • Incentive comp did not change attractiveness • Performance did not vary with different comp contracts

  13. Limitations • Only two forms of comp contracts were tested • Only used two tasks • May not be generalizable • Only used a single period

  14. Contributions • Demonstrates that incentive-based contracts may interact with and adversely affect attractiveness and performance • It’s important since there has been a shift from assembly line work to more mentally challenging and interesting tasks

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