Search results

Kerr's (1975) examination of the “folly of rewarding A while hoping for B” led him to encourage organizations to align reward system and desired employee behavior. Since then, much of the accounting and control literature has increasingly reduced the reward system to one of its components – incentive compensation plans – and has increasingly ceased to examine other behavioral levers used by corporations, thus implicitly or explicitly treating measurement and reward as a sufficient condition to obtain desired employee behavior. This chapter considers the complexity of the reward system (including its inevitable subjective dimension) and discusses its role, in connection with other important managerial levers, in corporations’ broader efforts to shape employee behavior. The chapter concludes with a review of literature streams in economics and psychology, suggesting that an intense incentive alignment approach may be self-fulfilling and hence counter-productive.

The literature on post-completion reviews (PCRs) either does not deal with the tying of PCRs to extrinsic rewards or provides scant theoretical reasoning or empirical analysis to back up its recommendations.

Based on research from psychology and empirical studies, the present chapter proposes that several effects of a PCR, which must be deemed rather dysfunctional, will increase when extrinsic rewards are linked to such a review. At the same time some possibly functional effects, however, are likely to remain constant. The propositions, therefore, call the usefulness of tying PCRs to rewards into question and call for further investigation.

While the use of computerized decision aids in accounting is widespread, little is known about the effects of decision aids on accounting decision making. However, prior research has often noted the difficulty in getting users to accept and rely upon decision aids (Rose, 2002). A primary area of focus in the design of decision aids that will facilitate user acceptance and reliance has been the development of user-centered interfaces that increase the user's comfort with the aid. This study contributes to this body of research by extending the findings of Ryan, Mims, and Koestner (1983) on the use of informational versus controlling rewards to the context of a decision aid and the interface design. While Ryan et al. focused on the effects of verbal feedback on intrinsic motivation, this study focuses on the impact of text-based feedback from a decision aid on decision performance for a choice task. Additionally, this study examines the effect of task-contingent versus performance-contingent rewards on the impact of the decision aid feedback. The results indicate a differential effect from that of Ryan et al. (1983) when feedback is provided through a decision aid and the focus is on decision performance rather than the precursor condition of intrinsic motivation. Additional research is needed to help explain why the findings obtained by Ryan et al. do not hold in the context of computerized decision aid use when decision performance is measured directly. There are important implications of these findings both in terms of theory development and decision aid design in professional decision-making environments such as accounting.

We present a specific mathematical model for predicting allocative behaviors in the context of reward expectations theory. We test the goodness of fit of the model to data from two empirical studies and demonstrate that it fits quite well. We also suggest alternative research uses for the model.

It is the general purpose of this chapter to introduce assumptions, postulates and hypotheses concerning the social nature of human emotions. I will propose some universal social causes of emotion categories by integrating Kemper’s (1978) power and status dimensions in dyadic relations to universal structures of human groups. These structures, of Self and Other meeting or not meeting expectations and receiving rewards or not, predict specific emotion categories. Power and status dimensions are added to the model and defined in terms of expectation/sanction (E/S) states, and are proposed to be universal as well. Furthermore, changing E/S conditions produce corresponding changes in power/status relations, and changes in emotion categories. These changing social structural conditions cause individual anxieties to emerge. Extending Kemper’s theoretical conceptualizations, gaining or losing power-advantage or status-advantage predicts syndromes of universal anxiety emotions.

Recent developments in identity theory are used to understand emotions in distributive justice theory. Three issues are examined: the consistency vs. enhancement dynamic, the status dynamic, and the resource dynamic. Results reveal individuals initially react positively to over-rewards; later they react more negatively. We suggest that the enhancement process occurs initially; the consistency process occurs later. Regarding status, persons respond negatively to unjust outcomes when they come from higher status persons. Finally, positive emotions are a resource for individuals initially and across encounters, buffering the effect of repeated unjust outcomes. Overall, this study helps develop emotions in distributive justice theory.

This study examines how the structure of referent networks, or the social network defined by knowing others’ reward levels, affects perceptions of distributive justice. The homogeneity of rewards in the referent network, the amount of inequality in the referent network, and an individual’s reward level are all associated with distributive justice perceptions. Several moderating relationships are also examined.

We relied on data from a controlled laboratory experiment to test a series of theoretically derived hypotheses.

The study shows that several aspects about the structure of the referent network are important for shaping perceptions of distributive justice. Specifically, the reward heterogeneity and amount of inequality in the network are found to be negatively associated with distributive justice, while reward levels are found to be positively associated with distributive justice. Furthermore, the effect of reward levels on distributive justice is moderated by both (i) the presence of a referential standard for rewards and (ii) the amount of inequality in the network.

While being among the first studies to demonstrate effects of referent networks on perceptions of fairness, it is unclear how group memberships combine with referent network effects and which factors may blur these relationships in uncontrolled environments. Subsequent scholarship on the effect of referent networks on justice perceptions should leverage multiple data sources.

Research on the effects of referents on justice perceptions has focused on particular referent individuals. We recast this issue in terms of referent networks, which highlights the empirical reality that individuals have a variety of sources or alters which could operate as referents.

A fundamental ethical question is how a redistributive system should reward individual effort. Marginal productivity reward has been justified either as a way of ensuring efficiency or as a way of respecting people's self-ownership. Both these arguments have their limitations. We show that marginal productivity reward is implied by one intuitively appealing requirement on the reward structure, which we name non-negative reward. This result can be interpreted in one of two ways. It can be seen as a new justification of marginal productivity reward that avoids the limitations of the traditional arguments. Alternatively, it can be seen as a result showing that any redistributive system that makes transfers conditional on effort, sometimes will make the reward individuals get for their additional effort completely conditional on others effort. Finally, we also show that no genuine redistributive system satisfies both non-negative reward and the liberal requirement of no forced labour.

Gamification, the integration of game mechanics to influence behavior and engagement, is a much-touted method of improving participant action. Characteristics of online video games (e.g., World of Warcraft, Farmville, The Sims) have been shown to improve motivation, sustain learner engagement, and increase satisfaction. Gamification is used in websites, businesses, medicine, law enforcement, and increasingly in education. However, gamification is only beneficial to an activity if the relationship between the activity and the final goal are understood. This chapter looks at the gamification in education, in particular second language acquisition, and examines seven basic game mechanics: achievement, appointment, rewards, leaderboards, privacy, social engagement loops (or viral mechanics), and modifiers. The discussion describes implementation of game mechanics and potential pitfalls of gamification.