Rewarding Carrots and Crippling Sticks: Eliciting Employee Preferences For the Optimal Incentive Design

Konstantinos Pouliakas, Ioannis Theodossiou

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

The effectiveness of conventional firm-specific incentive tools is assessed based on the perceptions of a unique sample of employees from seven European countries. A ‘menu’ of conditions likely to elicit optimal worker response to specific incentives is also revealed. The results suggest that the primary determinant of employee effort is job discretion, though monetary rewards and ‘gift exchanges’ are the most effective motivators. Monitoring and Taylor-type assembly lines are considered unproductive. The optimal incentive design by firms is shown to be shaped by a host of contextual factors and requires a “participative” management approach to achieve its maximal motivational potential.
Original languageEnglish
Pages (from-to)1247–1265
Number of pages19
JournalJournal of Economic Psychology
Volume33
Issue number6
Early online date30 Aug 2012
DOIs
Publication statusPublished - Dec 2012

Fingerprint

Daucus carota
Motivation
incentive
employee
firm
Gift Giving
gift
Reward
reward
determinants
monitoring
worker
management
Incentives
Employees

Keywords

  • incentives
  • effectiveness
  • effort
  • attitudes
  • employees

Cite this

Rewarding Carrots and Crippling Sticks : Eliciting Employee Preferences For the Optimal Incentive Design. / Pouliakas, Konstantinos; Theodossiou, Ioannis.

In: Journal of Economic Psychology, Vol. 33, No. 6, 12.2012, p. 1247–1265.

Research output: Contribution to journalArticle

@article{0789360422304ef2ab126f7b12fa73f5,
title = "Rewarding Carrots and Crippling Sticks: Eliciting Employee Preferences For the Optimal Incentive Design",
abstract = "The effectiveness of conventional firm-specific incentive tools is assessed based on the perceptions of a unique sample of employees from seven European countries. A ‘menu’ of conditions likely to elicit optimal worker response to specific incentives is also revealed. The results suggest that the primary determinant of employee effort is job discretion, though monetary rewards and ‘gift exchanges’ are the most effective motivators. Monitoring and Taylor-type assembly lines are considered unproductive. The optimal incentive design by firms is shown to be shaped by a host of contextual factors and requires a “participative” management approach to achieve its maximal motivational potential.",
keywords = "incentives, effectiveness, effort, attitudes, employees",
author = "Konstantinos Pouliakas and Ioannis Theodossiou",
year = "2012",
month = "12",
doi = "10.1016/j.joep.2012.08.006",
language = "English",
volume = "33",
pages = "1247–1265",
journal = "Journal of Economic Psychology",
issn = "0167-4870",
publisher = "Elsevier",
number = "6",

}

TY - JOUR

T1 - Rewarding Carrots and Crippling Sticks

T2 - Eliciting Employee Preferences For the Optimal Incentive Design

AU - Pouliakas, Konstantinos

AU - Theodossiou, Ioannis

PY - 2012/12

Y1 - 2012/12

N2 - The effectiveness of conventional firm-specific incentive tools is assessed based on the perceptions of a unique sample of employees from seven European countries. A ‘menu’ of conditions likely to elicit optimal worker response to specific incentives is also revealed. The results suggest that the primary determinant of employee effort is job discretion, though monetary rewards and ‘gift exchanges’ are the most effective motivators. Monitoring and Taylor-type assembly lines are considered unproductive. The optimal incentive design by firms is shown to be shaped by a host of contextual factors and requires a “participative” management approach to achieve its maximal motivational potential.

AB - The effectiveness of conventional firm-specific incentive tools is assessed based on the perceptions of a unique sample of employees from seven European countries. A ‘menu’ of conditions likely to elicit optimal worker response to specific incentives is also revealed. The results suggest that the primary determinant of employee effort is job discretion, though monetary rewards and ‘gift exchanges’ are the most effective motivators. Monitoring and Taylor-type assembly lines are considered unproductive. The optimal incentive design by firms is shown to be shaped by a host of contextual factors and requires a “participative” management approach to achieve its maximal motivational potential.

KW - incentives

KW - effectiveness

KW - effort

KW - attitudes

KW - employees

U2 - 10.1016/j.joep.2012.08.006

DO - 10.1016/j.joep.2012.08.006

M3 - Article

VL - 33

SP - 1247

EP - 1265

JO - Journal of Economic Psychology

JF - Journal of Economic Psychology

SN - 0167-4870

IS - 6

ER -