Tuesday, September 1, 2009

"[F]inancial incentives [...] can result in a negative impact on overall performance."

"We find that financial incentives may indeed reduce intrinsic motivation and diminish ethical or other reasons for complying with workplace social norms such as fairness.
As a consequence, the provision of incentives can result in a negative impact on overall performance."

Dr. Bernd Irlenbusch - London School of Economics

Department of Management
Managerial Economics and Strategy Group

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