Does pay for performance really motivate employees

@inproceedings{Osterloh2002DoesPF,
  title={Does pay for performance really motivate employees},
  author={M. Osterloh and B. Frey},
  year={2002}
}
  • M. Osterloh, B. Frey
  • Published 2002
  • Business
  • Introduction Variable pay for performance may undermine employees’ efforts: Rewards crowd out intrinsic motivation under identified conditions. A bonus system then makes employees lose interest in the immediate goal. Moreover, monetary incentives in complex and novel tasks tend to produce stereotyped repetition, and measurement is often dysfunctional. Therefore intrinsic motivation is crucial for these tasks. However, for some work extrinsic incentives are sufficient. We offer a framework of… CONTINUE READING
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