The Role of Goals and Feedback in Incentivizing Performance

Zafer Akýn () and Emin Karagözoðlu
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Zafer Akýn: Department of Economics, Ipek University
Authors registered in the RePEc Author Service: Emin Karagözoğlu and Zafer Akin

No 1506, IPEK Working Papers from Ipek University, Department of Economics

Abstract: In this paper, we experimentally investigate how goal setting and feedback policies affect work performance. In particular, we study the effects of (i) absolute performance feedback, (ii) self-specified goals and (iii) exogenous goals and relative performance feedback. Our results show that the average performance of the subjects who are provided self-performance feedback is 11% lower than the ones who get no feedback. Moreover, setting a non-binding personal goal does not affect performance. Finally, assigning an exogenous goal and providing relative performance feedback decreases performance by 8%. We discuss the insights our findings offer for the optimal design of goal setting and feedback mechanisms.

Keywords: Feedback; Goal; Relative Performance; Piece-rate; Motivation (search for similar items in EconPapers)
JEL-codes: M50 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2015-08, Revised 2015-08
New Economics Papers: this item is included in nep-bec, nep-exp, nep-hrm and nep-neu
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Citations:

Forthcoming in MANAGERIAL AND DECISION ECONOMICS

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Related works:
Journal Article: The Role of Goals and Feedback in Incentivizing Performance (2017)
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