[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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