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Organizational Control and Work Effort -- Another Look at the Interplay of Rewards and Motivation

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  • Jennifer Kunz
  • Stefan Linder

Abstract

Providing rewards is a central element of organizational control systems. However, the literature is hardly helpful from a practitioner's perspective: it typically focuses on monetary rewards at the expense of non-monetary, affiliative rewards, and yet researchers disagree over the usefulness of the prior ones. Some scholars claim that monetary rewards merely replace task-related (‘intrinsic’) motivation by reward-induced external pressure (‘extrinsic’ motivation). Empirical findings are mixed, partially given the different conceptualizations of intrinsic motivation. We shed more light on the impact of both monetary and non-monetary, affiliative rewards on the willingness to exert work effort and a potential detrimental interaction with different forms of intrinsic motivation. Our experimental results suggest that monetary and affiliative rewards have different effects: affiliative rewards clearly have beneficial effects, whereas the picture for monetary rewards is more nuanced than typically assumed in literature.

Suggested Citation

  • Jennifer Kunz & Stefan Linder, 2012. "Organizational Control and Work Effort -- Another Look at the Interplay of Rewards and Motivation," European Accounting Review, Taylor & Francis Journals, vol. 21(3), pages 591-621, March.
  • Handle: RePEc:taf:euract:v:21:y:2012:i:3:p:591-621
    DOI: 10.1080/09638180.2012.684498
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    File URL: http://hdl.handle.net/10.1080/09638180.2012.684498
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    Citations

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    Cited by:

    1. Sebastian Goebel & Barbara Weißenberger, 2016. "The Dark Side of Tight Financial Control: Causes and Remedies of Dysfunctional Employee Behaviors," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 17(1), pages 69-101, April.
    2. Stefan Linder, 2016. "Fostering strategic renewal: monetary incentives, merit-based promotions, and engagement in autonomous strategic action," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(2), pages 251-280, May.
    3. repec:spr:jbecon:v:87:y:2017:i:9:d:10.1007_s11573-017-0864-6 is not listed on IDEAS
    4. repec:spr:jmgtco:v:28:y:2017:i:3:d:10.1007_s00187-017-0248-7 is not listed on IDEAS
    5. Jennifer Kunz & Stefan Linder, 2015. "With a view to make things better: individual characteristics and intentions to engage in management innovation," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(3), pages 525-556, August.

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