The Effect of Financial Incentives and Career Concerns on Reporting Bias

Ability, Career Concerns, and Financial Incentives in a Multi-Task Setting

Journal of Management Accounting Research ◽

10.2308/jmar-10066 ◽

2011 ◽

Vol 23 (1) ◽

pp. 211-229 ◽

Cited By ~ 1

Author(s):

Alexander Brüggen

Keyword(s):

Financial Incentives ◽

Strategic Behavior ◽

Career Concerns ◽

Effort Allocation ◽

Perceived Ability ◽

Task Setting ◽

Strong Focus ◽

Ability Levels ◽

Individual Ability ◽

Low Ability

ABSTRACT In a laboratory experiment, I investigate the role of perceived own ability in a multi-task setting with career concerns under fixed wages and under financial incentives with a higher weight on the task measured with noise. I find that in the absence of career concerns, participants allocate effort evenly between tasks under fixed wages and allocate more effort on the task measured with noise, both irrespective of individual ability levels. However, in presence of career concerns, perceived own ability matters for effort allocation. In particular, career concerns distort effort allocation of agents with high perceived ability, whereas agents with low perceived ability show less distorted effort allocation. In the presence of career concerns, the interaction between financial incentives and perceived ability is always disordinal, which implies that low ability agents exhibit less distorted behavior under any compensation contract. A higher explicit incentives weight on the task measured with greater noise helps to balance effort allocation, but makes all agents worse off due to the strategic behavior of agents. To keep their chances on the labor market high, ability agents increase their effort allocation to the precisely measured task slightly in anticipation of a strong focus on the precisely measured task of low ability agents. These findings are in line with economic predictions and show that perceived own ability moderates the relationship between financial incentives and career concerns on effort allocation.

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Business: The Electronic Health Record: Front Line Experience

Perspectives on Administration and Supervision ◽

10.1044/aas21.1.18 ◽

2011 ◽

Vol 21 (1) ◽

pp. 18-22

Author(s):

Rosemary Griffin

Keyword(s):

Health Care ◽

Information Technology ◽

Electronic Health Record ◽

Financial Incentives ◽

Best Practice ◽

Health Care Systems ◽

The United States ◽

Health Record ◽

Health Trends ◽

Electronic Health

National legislation is in place to facilitate reform of the United States health care industry. The Health Care Information Technology and Clinical Health Act (HITECH) offers financial incentives to hospitals, physicians, and individual providers to establish an electronic health record that ultimately will link with the health information technology of other health care systems and providers. The information collected will facilitate patient safety, promote best practice, and track health trends such as smoking and childhood obesity.

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The Relation Between Financial Incentives, Motivation, and Performance

Journal of Personnel Psychology ◽

10.1027/1866-5888/a000182 ◽

2017 ◽

Vol 16 (2) ◽

pp. 61-76 ◽

Cited By ~ 12

Author(s):

Anaïs Thibault Landry ◽

Marylène Gagné ◽

Jacques Forest ◽

Sylvie Guerrero ◽

Michel Séguin ◽

...

Keyword(s):

Financial Incentives ◽

Work Performance ◽

Autonomous Motivation ◽

Compensation Plans ◽

Work Settings ◽

Path Analyses ◽

Three Samples ◽

And Performance ◽

Performance Results

Abstract. To this day, researchers are debating the adequacy of using financial incentives to bolster performance in work settings. Our goal was to contribute to current understanding by considering the moderating role of distributive justice in the relation between financial incentives, motivation, and performance. Based on self-determination theory, we hypothesized that when bonuses are fairly distributed, using financial incentives makes employees feel more competent and autonomous, which in turn fosters greater autonomous motivation and lower controlled motivation, and better work performance. Results from path analyses in three samples supported our hypotheses, suggesting that the effect of financial incentives is contextual, and that compensation plans using financial incentives and bonuses can be effective when properly managed.

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