Performance Monitoring and the Incentives for Exertion of Effort

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish
Article number2440005
JournalQuarterly Journal of Finance
Volume14
Issue number2
DOIs
StatePublished - 1 Jun 2024

Keywords

  • Performance monitoring
  • employee motivation
  • experimental economics
  • incentive structures
  • success criteria in performance tests

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics
  • Strategy and Management

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