Performance-Contingent Rewards and Self-Efficacy: Moderating Effects of Timing of Reward Determination and Performance Standards

29 Pages Posted: 24 Apr 2017

See all articles by Joowoong Park

Joowoong Park

Korea Advanced Institute of Science and Technology (KAIST)

Jae-Suk Yang

Korea Advanced Institute of Science and Technology (KAIST)

Date Written: April 21, 2017

Abstract

Purpose – The purpose of this study is to determine the moderating effects of the timing of reward determination and performance standards on the relationship between performance-contingent rewards and self-efficacy.

Design/methodology/approach – The sample included 568 participants from Amazon Mechanical Turk. They were provided with a webpage developed purposely for our online experiment. The model was tested for mediation and moderation processes using regression analysis and ANOVA.

Findings – We found a mediating effect of self-efficacy between performance-contingent rewards and intrinsic motivation. A moderating effect of performance standards (absolute, relative, ambiguous) on the relationship between performance-contingent rewards and self-efficacy was also found. Performance standards were found to be more important moderators than the timing of reward determination.

Research limitations/implications – We suggested the concept of reward determining timing, and verified cognitive evaluation theory empirically. Limitations can be caused by the methodology, online experiment.

Practical implications – People measure their own efficacy or competence by comparing themselves with others more than with performance standards. Use of relative performance standards should be considered to increase self-efficacy and intrinsic motivation of employees.

Originality/value – This study describes the importance of the timing of reward determination (i.e., before or after completion of a performance-related task).

Keywords: Performance-contingent rewards, Performance standards, Timing of reward determination, Self-efficacy, Intrinsic motivation

Suggested Citation

Park, Joowoong and Yang, Jae-Suk, Performance-Contingent Rewards and Self-Efficacy: Moderating Effects of Timing of Reward Determination and Performance Standards (April 21, 2017). Available at SSRN: https://ssrn.com/abstract=2956232 or http://dx.doi.org/10.2139/ssrn.2956232

Joowoong Park

Korea Advanced Institute of Science and Technology (KAIST) ( email )

373-1 Kusong-dong
Yuson-gu
Taejon 305-701, 130-722
Korea, Republic of (South Korea)

Jae-Suk Yang (Contact Author)

Korea Advanced Institute of Science and Technology (KAIST) ( email )

291 Daehak-ro
Yuseong-gu
Daejeon, 34141
Korea, Republic of (South Korea)

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