An Examination of the Relationships Among Monetary Incentives, Goal Level, Goal Commitment, and Performance

Abstract

This study tested the effects of incentive type, incentive level, and goal level on valence, goal commitment, and performance. Subjects (N=251) worked on a class scheduling task under either piece-rate, hourly, goal attainment bonus, or no-pay conditions, under either high or low amounts of money, and were assigned either easy, moderate, or difficult goals (a 4X2X3 design). Results demonstrated that both the level of valence and valence slope mediated the relationship between incentives and goal commitment. Incentive type, incentive level, and goal level interacted in determining performance, and these effects were not completely mediated by goal commitment.