IDEAS home Printed from https://ideas.repec.org/p/tin/wpaper/20170090.html
   My bibliography  Save this paper

Team Incentives, Task Assignment, and Performance: A Field Experiment

Author

Listed:
  • Josse (J.) Delfgaauw

    () (Erasmus University Rotterdam; Tinbergen Institute, The Netherlands)

  • Robert (A.J.) Dur

    () (Erasmus University Rotterdam, CESifo Munich, and IZA Bonn)

  • Michiel Souverijn

    () (Erasmus University Rotterdam)

Abstract

The performance of a work team commonly depends on the effort exerted by the team members as well as on the division of tasks among them. However, when leaders assign tasks to team members, performance is usually not the only consideration. Favouritism, employees' seniority, employees' preferences over tasks, and fairness considerations often play a role as well. Team incentives have the potential to curtail the role of these factors in favor of performance -- in particular when the incentive plan includes both the leader and the team members. This paper presents the results of a field experiment designed to study the effects of such team incentives on task assignment and performance. We introduce team incentives in a random subsets of 108 stores of a Dutch retail chain. We find no effect of the incentive, neither on task assignment nor on performance.

Suggested Citation

  • Josse (J.) Delfgaauw & Robert (A.J.) Dur & Michiel Souverijn, 2017. "Team Incentives, Task Assignment, and Performance: A Field Experiment," Tinbergen Institute Discussion Papers 17-090/VII, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20170090
    as

    Download full text from publisher

    File URL: http://papers.tinbergen.nl/17090.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Azmat, Ghazala & Iriberri, Nagore, 2010. "The importance of relative performance feedback information: Evidence from a natural experiment using high school students," Journal of Public Economics, Elsevier, vol. 94(7-8), pages 435-452, August.
    2. W.D. McCausland & K. Pouliakas & I. Theodossiou, 2005. "Some are Punished and Some are Rewarded: A Study of the Impact of Performance Pay on Job Satisfaction," Labor and Demography 0505019, EconWPA.
    3. Uri Gneezy & Pedro Rey-Biel, 2014. "On The Relative Efficiency Of Performance Pay And Noncontingent Incentives," Journal of the European Economic Association, European Economic Association, vol. 12(1), pages 62-72, February.
    4. Friebel, Guido & Heinz, Matthias & Krüger, Miriam & Zubanov, Nick, 2015. "Team incentives and performance: Evidence from a retail chain," CEPR Discussion Papers 10796, C.E.P.R. Discussion Papers.
    5. Christiane Bradler & Robert Dur & Susanne Neckermann & Arjan Non, 2016. "Employee Recognition and Performance: A Field Experiment," Management Science, INFORMS, vol. 62(11), pages 3085-3099, November.
    6. John List & Sally Sadoff & Mathis Wagner, 2011. "So you want to run an experiment, now what? Some simple rules of thumb for optimal experimental design," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 439-457, November.
    7. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2009. "Social Connections and Incentives in the Workplace: Evidence From Personnel Data," Econometrica, Econometric Society, vol. 77(4), pages 1047-1094, July.
    8. Michael Kosfeld & Susanne Neckermann, 2011. "Getting More Work for Nothing? Symbolic Awards and Worker Performance," American Economic Journal: Microeconomics, American Economic Association, vol. 3(3), pages 86-99, August.
    9. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2013. "Team Incentives: Evidence From A Firm Level Experiment," Journal of the European Economic Association, European Economic Association, vol. 11(5), pages 1079-1114, October.
    10. Paul Glewwe & Nauman Ilias & Michael Kremer, 2010. "Teacher Incentives," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 205-227, July.
    11. Alina Ileana Petrescu & Rob Simmons, 2008. "Human resource management practices and workers' job satisfaction," International Journal of Manpower, Emerald Group Publishing, vol. 29(7), pages 651-667, November.
    12. Hua Chen & Noah Lim, 2013. "Should Managers Use Team-Based Contests?," Management Science, INFORMS, vol. 59(12), pages 2823-2836, December.
    13. Jordi Blanes i Vidal & Mareike Nossol, 2011. "Tournaments Without Prizes: Evidence from Personnel Records," Management Science, INFORMS, vol. 57(10), pages 1721-1736, October.
    14. Camelia M. Kuhnen & Agnieszka Tymula, 2012. "Feedback, Self-Esteem, and Performance in Organizations," Management Science, INFORMS, vol. 58(1), pages 94-113, January.
    15. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2007. "Incentives for Managers and Inequality among Workers: Evidence from a Firm-Level Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 122(2), pages 729-773.
    16. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
    17. Colin Green & John S. Heywood, 2008. "Does Performance Pay Increase Job Satisfaction?," Economica, London School of Economics and Political Science, vol. 75(300), pages 710-728, November.
    18. Muriel Niederle & Lise Vesterlund, 2011. "Gender and Competition," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 601-630, September.
    19. Gerd Muehlheusser & Sandra Schneemann & Dirk Sliwka, 2016. "The Impact Of Managerial Change On Performance: The Role Of Team Heterogeneity," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 1128-1149, April.
    20. Uri Gneezy & Muriel Niederle & Aldo Rustichini, 2003. "Performance in Competitive Environments: Gender Differences," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 1049-1074.
    21. Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 791-810.
    22. Sarena F. Goodman & Lesley J. Turner, 2013. "The Design of Teacher Incentive Pay and Educational Outcomes: Evidence from the New York City Bonus Program," Journal of Labor Economics, University of Chicago Press, vol. 31(2), pages 409-420.
    23. Simon Burgess & Carol Propper & Marisa Ratto & StephanievonHinke KesslerScholder & Emma Tominey, 2010. "Smarter Task Assignment or Greater Effort: The Impact of Incentives on Team Performance," Economic Journal, Royal Economic Society, vol. 120(547), pages 968-989, September.
    24. Philip Babcock & Kelly Bedard & Gary Charness & John Hartman & Heather Royer, 2015. "Letting Down The Team? Social Effects Of Team Incentives," Journal of the European Economic Association, European Economic Association, vol. 13(5), pages 841-870, October.
    25. Delfgaauw, Josse & Dur, Robert & Non, Arjan & Verbeke, Willem, 2014. "Dynamic incentive effects of relative performance pay: A field experiment," Labour Economics, Elsevier, vol. 28(C), pages 1-13.
    26. Pablo Casas-Arce & F. Asís Martínez-Jerez, 2009. "Relative Performance Compensation, Contests, and Dynamic Incentives," Management Science, INFORMS, vol. 55(8), pages 1306-1320, August.
    27. Karthik Muralidharan & Venkatesh Sundararaman, 2011. "Teacher Performance Pay: Experimental Evidence from India," Journal of Political Economy, University of Chicago Press, vol. 119(1), pages 39-77.
    28. Jose Apesteguia & Ghazala Azmat & Nagore Iriberri, 2012. "The Impact of Gender Composition on Team Performance and Decision Making: Evidence from the Field," Management Science, INFORMS, vol. 58(1), pages 78-93, January.
    29. repec:aea:aecrev:v:107:y:2017:i:8:p:2168-2203 is not listed on IDEAS
    30. Roland G. Fryer, 2013. "Teacher Incentives and Student Achievement: Evidence from New York City Public Schools," Journal of Labor Economics, University of Chicago Press, vol. 31(2), pages 373-407.
    31. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2013. "Team incentives: evidence from a firm level," LSE Research Online Documents on Economics 53141, London School of Economics and Political Science, LSE Library.
    32. repec:dau:papers:123456789/4727 is not listed on IDEAS
    33. Ghazala Azmat & Nagore Iriberri, 2016. "The Provision of Relative Performance Feedback: An Analysis of Performance and Satisfaction," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(1), pages 77-110, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Team incentives; Task assignment; Field experiment;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tin:wpaper:20170090. 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: (Tinbergen Office +31 (0)10-4088900). General contact details of provider: http://edirc.repec.org/data/tinbenl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.