IDEAS home Printed from https://ideas.repec.org/a/wsi/qjfxxx/v14y2024i02ns2010139224400056.html
   My bibliography  Save this article

Performance Monitoring and the Incentives for Exertion of Effort

Author

Listed:
  • Yevgeny Mugerman

    (Graduate School of Business Administration, Bar-Ilan University, Ramat-Gan, Israel2Federmann Center for the Study of Rationality, The Hebrew University of Jerusalem, Jerusalem, Israel)

  • Eyal Winter

    (Federmann Center for the Study of Rationality, The Hebrew University of Jerusalem, Jerusalem, Israel3Department of Economics, The Hebrew University of Jerusalem, Jerusalem, Israel)

  • Tomer Yafeh

    (Federmann Center for the Study of Rationality, The Hebrew University of Jerusalem, Jerusalem, Israel4Business School, The Hebrew University of Jerusalem, Jerusalem, Israel)

Abstract

This paper investigates the impact of monitoring intensity on individuals’ motivation to exert effort. Using an experimental approach, we designed a test comprising six problems, with varied levels of monitoring and success criteria, to evaluate performance as an indicator of effort. The results reveal a nonlinear relationship between the stringency of monitoring criteria and worker performance. Interestingly, we found that optimal performance is attained when participants are required to answer correctly only one of the six problems. This study enhances our understanding of performance monitoring strategies and their effects in modern work settings.

Suggested Citation

  • Yevgeny Mugerman & Eyal Winter & Tomer Yafeh, 2024. "Performance Monitoring and the Incentives for Exertion of Effort," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 1-19, June.
    • Handle: RePEc:wsi:qjfxxx:v:14:y:2024:i:02:n:s2010139224400056
    DOI: 10.1142/S2010139224400056
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2010139224400056
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S2010139224400056?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Performance monitoring; experimental economics; employee motivation; incentive structures; success criteria in performance tests;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:qjfxxx:v:14:y:2024:i:02:n:s2010139224400056. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/qjf/qjf.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.