Arbeitspapier
The effects of incentives, social norms, and employees' values on work performance
This agent-based model contributes to a theory of corporate culture in which company performance and employees' behaviour result from the interaction between financial incentives, motivational factors and endogenous social norms. Employees' personal values are the main drivers of behaviour. They shape agents' decisions about how much of their working time to devote to individual tasks, cooperative, and shirking activities. The model incorporates two aspects of the management style, analysed both in isolation and combination: (i) monitoring efforts affecting intrinsic motivation, i.e. the firm is either trusting or controlling, and (ii) remuneration schemes affecting extrinsic motivation, i.e. individual or group rewards. The simulations show that financial incentives can (i) lead to inefficient levels of cooperation, and (ii) reinforce value-driven behaviours, amplified by emergent social norms. The company achieves the highest output with a flat wage and a trusting management. Employees that value self-direction highly are pivotal, since they are strongly (de-)motivated by the management style.
- ISBN
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978-3-96973-063-8
- Language
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Englisch
- Bibliographic citation
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Series: Ruhr Economic Papers ; No. 917
- Classification
-
Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Time Allocation and Labor Supply
Personnel Economics: Compensation and Compensation Methods and Their Effects
Personnel Economics: Labor Management
Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
- Subject
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Values
social norms
remuneration systems
intrinsic motivation
monitoring
agent-based modelling
- Event
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Geistige Schöpfung
- (who)
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Roos, Michael W. M.
Reale, Jessica
Banning, Frederik
- Event
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Veröffentlichung
- (who)
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RWI - Leibniz-Institut für Wirtschaftsforschung
- (where)
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Essen
- (when)
-
2021
- DOI
-
doi:10.4419/96973063
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Roos, Michael W. M.
- Reale, Jessica
- Banning, Frederik
- RWI - Leibniz-Institut für Wirtschaftsforschung
Time of origin
- 2021
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