The Moderating Effects of Task Complexity and Task Attractiveness on the Impact of Monetary Incentives in Repeated Tasks

Author:

Bailey Charles D.1,Fessler Nicholas J.2

Affiliation:

1. The University of Memphis

2. University of Central Missouri

Abstract

ABSTRACT This study examines the interactive effects of task complexity and attractiveness on the effectiveness of explicit monetary incentives in promoting task performance. We provide theory for and find an interaction such that monetary incentives are more effective when tasks are less complex, but only when the task is viewed as relatively unattractive. In addition, by varying task complexity, this study extends Bailey et al. (1998), finding that when incentive pay leads to higher performance, it is through faster initial performance, not faster improvement.

Publisher

American Accounting Association

Subject

Accounting,Business and International Management

Reference41 articles.

1. Pressure and performance in accounting decision settings: Paradoxical effects of incentives, feedback, and justification;Ashton;Journal of Accounting Research,1990

2. The effects of monetary incentives on effort and decision performance: The role of cognitive characteristics;Awasthi;The Accounting Review,1990

3. The effects of monetary incentives on worker learning and performance in an assembly task;Bailey;Journal of Management Accounting Research,1998

4. Some evidence on the nature of relearning curves;Bailey;The Accounting Review,1992

5. The relation between fit and prediction for alternative forms of learning curves and relearning curves;Bailey;IIE Transactions,1997

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