False or fitting recognition? The use of high performance bonuses in motivating organizational achievements
This research undertakes a theoretical and empirical examination of (high performance bonus) systems in government, that is, incentive payments awarded by the federal government to state organizations or statewide programs to motivate and recognize high performance achievements. The paper draws from a multidisciplinary literature on incentives in organizations to first derive implications for the design and implementation of high performance bonus systems. An empirical analysis of the Workforce Investment Act performance bonus system and its effectiveness in recognizing and rewarding performance follows. The results of the theoretical and empirical investigation suggest that high performance bonus systems are more likely to encourage misrepresentation of performance and other strategic behaviors than to recognize and motivate exceptional performance or performance improvements. © 2007 by the Association for Public Policy Analysis and Management
Volume (Year): 26 (2007)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/34787/home|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert Gibbons, 1998.
"Incentives in Organizations,"
Journal of Economic Perspectives,
American Economic Association, vol. 12(4), pages 115-132, Fall.
- Heckman, James J. & Heinrich, Carolyn J. & Smith, Jeffrey A., 2002.
"The Performance of Performance Standards,"
IZA Discussion Papers
525, Institute for the Study of Labor (IZA).
- Gerald Marschke & Pascal Courty, 2000. "An Empirical Investigation of Gaming Responses to Performance Incentives," Discussion Papers 00-12, University at Albany, SUNY, Department of Economics.
- Kathryn Anderson & Richard V. Burkhauser & Jennie E. Raymond, 1993.
"The effect of creaming on placement rates under the Job Training Partnership Act,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 46(4), pages 613-624, July.
- Kathryn H. Anderson & Richard V. Burkhauser & Jennie E. Raymond, 1993. "The Effect of Creaming on Placement Rates under the Job Training Partnership Act," ILR Review, Cornell University, ILR School, vol. 46(4), pages 613-624, July.
- Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
- Baker, George P, 1992. "Incentive Contracts and Performance Measurement," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 598-614, June.
When requesting a correction, please mention this item's handle: RePEc:wly:jpamgt:v:26:y:2007:i:2:p:281-304. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.