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Treating Equals Unequally - Incentives in Teams, Workers' Motivation and Production Technology

  • Sebastian Goerg
  • Sebastian Kube
  • Ro'i Zultan

    ()

The importance of fair and equal treatment of workers is at the heart of the debate in organizational management. In this regard, we study how reward mechanisms and production technologies affect effort provision in teams. Our experimental results demonstrate that unequal rewards can potentially increase productivity by facilitating coordination, and that the effect strongly interacts with the exact shape of the production function. Taken together, our data highlight the relevance of the production function for organization construction and suggest that equal treatment of equals is neither a necessary nor a sufficient prerequisite for eliciting high performance in teams.

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File URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse17_2007.pdf
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Paper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse17_2007.

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Length: 29
Date of creation: Dec 2007
Date of revision: Jan 2008
Handle: RePEc:bon:bonedp:bgse17_2007
Contact details of provider: Postal:
Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany

Fax: +49 228 73 6884
Web page: http://www.bgse.uni-bonn.de

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