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[2019-03] Moderating Effects of Timing of Reward Determination and Performance Standards between Rewards and Self-efficacy

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  • 날짜 2019.04.29
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[2019-03]

Moderating Effects of Timing of Reward Determination and Performance Standards between Rewards and Self-efficacy


Joowoong Park

Moon Soul Graduate School of Future Strategy, KAIST


Jae-Suk Yang

Moon Soul Graduate School of Future Strategy, KAIST


Abstract
Purpose – The purpose of this study is to determine the moderating effects of the timing of
reward determination and performance standards on the relationship between pay-for- performance and self-efficacy.
Design/methodology/approach – The sample included 352 participants from Amazon
Mechanical Turk. They were provided with a webpage developed purposely for our online
experiment. The model was tested for mediation and moderation processes using regression
analysis and ANOVA.
Findings – We found a mediating effect of self-efficacy between pay-for-performance and
intrinsic motivation. A moderating effect of performance standards (absolute, relative,
ambiguous) on the relationship between pay-for-performance and self-efficacy was also found.
Performance standards were found to be more important moderators than the timing of reward
determination.
Research limitations/implications – We suggested the concept of the timing of reward
determination and verified self-determination theory empirically. Limitations may exist due
to the methodology (online experiment). Practical implications – People measure their own efficacy or competence by comparing
themselves with others more than with performance standards. Use of relative performance
standards should be considered carefully for self-efficacy and intrinsic motivation of
employees.
Originality/value – This study introduced the concept of the timing of reward determination
(i.e., before or after completion of a performance-related task) and verified the moderating
effect of performance standards.


Keywords Pay-for-performance, Performance standards, Timing of reward determination,
Self-efficacy, Intrinsic motivation


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