The thesis on hand is dealing with the impact of financial incentives on individual performance. For this, the perception of an experimental approach has been chosen. The target of the thesis is the development of the blueprint of an experiment to provide further research input on the effectiveness of financial incentives.
To do so, the theoretical background for studying this problem is introduced by investigating the psychological and economical approaches to analyze the topic. Additionally, empirical and experimental studies dealing with this issue are presented.
Based on those findings, the structure of an experiment to be carried out at university with students is developed and objectives, design and supplementary requirements for conducting this are discussed. Subsequent, suggestions for the analysis, reporting and possibly occurring challenges throughout the process of implementation are illustrated.
The design of the experiment is giving a verification of before detected findings of a non-linear correlation between incentives and performance. In contrary to standard economic models, the relation is not predicted to be monotonic, but S-shaped. For this perspective, not only performance on varying incentive levels is analyzed, but also performance if payments are absent. Furthermore, the influence of publishing the course of incentive levels in the beginning of the experiment, in comparison to a task-to-task announcement is investigated. An evaluation of this relation is undertaken by studying the impact of financial incentives on performance of three observation groups through two different exercises with varying incentive levels during a real-effort experiment.
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction
- 1.1 Scope of Research
- 1.2 Outline of the Thesis
- 2 Theoretical Background
- 2.1 Psychological Background
- 2.2 Economic Theory
- 3 Research Findings
- 3.1 Empirical Findings
- 3.2 Experimental Findings
- 3.3 Critical Acclaim and further Questions
- 4 Proposals for the Structure of an Experiment
- 4.1 Objective
- 4.2 Design
- 4.3 Organization
- 4.4 Subsequent to the Realization
- 4.5 Potentially occurring Challenges
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this thesis is to develop a blueprint for an experiment investigating the impact of financial incentives on individual performance. The thesis explores the existing psychological and economic theories related to incentives and performance, reviews relevant empirical and experimental studies, and proposes a detailed experimental design to further investigate this relationship. The experiment aims to verify the hypothesis of a non-linear, S-shaped correlation between incentives and performance, contrasting standard economic models that predict a monotonic relationship.
- Impact of financial incentives on individual performance
- Psychological and economic theories of motivation
- Design and implementation of experimental research
- Non-linear relationship between incentives and performance
- Influence of incentive announcement methods
Zusammenfassung der Kapitel (Chapter Summaries)
1 Introduction: This introductory chapter sets the stage for the thesis by defining the scope of research concerning the impact of financial incentives on individual performance. It outlines the structure of the thesis, providing a roadmap for the reader to follow the progression of the argument and the methodology used. The chapter establishes the central research question and justifies the need for further experimental investigation in this area.
2 Theoretical Background: This chapter lays the foundation for the experimental design by exploring the relevant psychological and economic theories surrounding motivation and incentives. It reviews existing literature to establish a theoretical framework that informs the hypothesis and the interpretation of the experimental results. This section provides the conceptual underpinnings for understanding the complexities of the relationship between incentives and performance, considering both individual psychological factors and economic principles.
3 Research Findings: This chapter summarizes existing empirical and experimental studies related to the impact of financial incentives on performance. It critically analyzes these findings, highlighting the strengths and weaknesses of previous research methodologies and identifying gaps in the literature. This analysis informs the design of the proposed experiment by considering what has been done before, what works well, and what needs further investigation. The chapter also highlights areas of contention and unanswered questions within the field.
4 Proposals for the Structure of an Experiment: This chapter presents a detailed proposal for an experiment designed to investigate the relationship between financial incentives and individual performance. It outlines the objectives, design, and organizational aspects of the experiment, including participant selection, experimental tasks, and data collection methods. The chapter also addresses potential challenges that may arise during the implementation of the experiment and proposes strategies for mitigation. It provides a comprehensive plan for conducting the study and anticipates potential issues.
Schlüsselwörter (Keywords)
Financial incentives, individual performance, experimental economics, motivation, psychological theories, economic models, non-linear relationship, incentive design, experimental methodology, real-effort experiment.
Frequently Asked Questions: Comprehensive Language Preview
What is the main objective of this thesis?
The main objective is to develop a blueprint for an experiment investigating the impact of financial incentives on individual performance. It explores existing psychological and economic theories, reviews relevant studies, and proposes a detailed experimental design to further investigate the non-linear relationship between incentives and performance.
What are the key themes explored in this thesis?
Key themes include the impact of financial incentives on individual performance, psychological and economic theories of motivation, experimental research design and implementation, the non-linear relationship between incentives and performance, and the influence of incentive announcement methods.
What is the structure of the thesis?
The thesis is structured into four chapters: 1. Introduction (defining the scope and outlining the structure); 2. Theoretical Background (exploring relevant psychological and economic theories); 3. Research Findings (summarizing and critically analyzing existing empirical and experimental studies); and 4. Proposals for the Structure of an Experiment (detailing the proposed experiment's objectives, design, and potential challenges).
What are the key findings discussed in Chapter 3 (Research Findings)?
Chapter 3 summarizes existing empirical and experimental studies on the impact of financial incentives on performance. It critically analyzes these findings, highlighting strengths and weaknesses of previous research and identifying gaps in the literature. This analysis informs the design of the proposed experiment.
What does Chapter 4 (Proposals for the Structure of an Experiment) cover?
Chapter 4 presents a detailed proposal for an experiment designed to investigate the relationship between financial incentives and individual performance. It outlines objectives, design, organization, potential challenges, and mitigation strategies. It provides a comprehensive plan for conducting the study.
What is the hypothesis being tested in this research?
The thesis aims to verify the hypothesis of a non-linear, S-shaped correlation between incentives and performance, contrasting standard economic models that predict a monotonic relationship.
What are the key words associated with this research?
Key words include: Financial incentives, individual performance, experimental economics, motivation, psychological theories, economic models, non-linear relationship, incentive design, experimental methodology, real-effort experiment.
What types of theories are reviewed in the theoretical background?
The theoretical background explores relevant psychological and economic theories surrounding motivation and incentives. It reviews existing literature to establish a theoretical framework for the hypothesis and interpretation of experimental results.
What is the proposed experimental design like?
The proposed experiment is designed to investigate the relationship between financial incentives and individual performance. The chapter details the objectives, design, and organizational aspects, including participant selection, experimental tasks, data collection, and potential challenges.
What is the significance of this research?
The research aims to contribute to a better understanding of the complex relationship between financial incentives and individual performance, potentially challenging existing economic models and offering insights for designing more effective incentive systems.
- Quote paper
- Steffen Hetzel (Author), 2010, The Impact of Financial Incentives on Individual Performance: An Experimental Approach , Munich, GRIN Verlag, https://www.grin.com/document/176391
