Moderators of Financial Incentives Effectiveness Meta-Analysis

The effectiveness of financial incentives decreases with increasing task complexity.

Task complexity and its inherent issues are important because they affect the effectiveness of reward structures.

As task complexity increases, more skills or resources are required to solve the task.

<p>The gap between task complexity and skill increases as task complexity increases.</p> Signup and view all the answers

<p>Performance is affected by the complexity of the task involved.</p> Signup and view all the answers

<p>With increasing task complexity, employees require more skill or resources to solve the task, leading to decreased effectiveness of financial incentives.</p> Signup and view all the answers

<p>The hypothesis is that task complexity moderates the relationship between financial incentives and performance such that the effect is weaker for complex tasks than for less complex tasks.</p> Signup and view all the answers

<p>Camerer and Hogarth (1999) argue that financial incentives affect performance in tasks where increased effort directly improves performance.</p> Signup and view all the answers

<p>Task complexity can have a negative impact on the effectiveness of individuals as well as on team-based rewards.</p> Signup and view all the answers

<p>Performance quality is defined as the accuracy of (team) output, including behavioural task performance and decision-making performance. Performance quantity refers to the amount of output and is similar to performance speed.</p> Signup and view all the answers

<p>Outcome type (quantitative or qualitative) was used as a moderator variable in previous meta-analyses on the effectiveness of financial incentives.</p> Signup and view all the answers

<p>The hypothesis is that outcome type moderates the relationship between financial incentives and performance such that the effect is stronger for quantitative outcomes than for qualitative outcomes.</p> Signup and view all the answers