TITLE

THE RELATIONSHIP OF TEAM GOALS, INCENTIVES, AND EFFICACY TO STRATEGIC RISK, TACTICAL IMPLEMENTATION, AND PERFORMANCE

AUTHOR(S)

Knight, Don; Durham, Cathy C.; Locke, Edwin A.

PUB. DATE

April 2001

SOURCE

Academy of Management Journal;Apr2001, Vol. 44 Issue 2, p326

SOURCE TYPE

Academic Journal

DOC. TYPE

Article

ABSTRACT

This study examined the effects of goal difficulty, monetary incentives, and efficacy on the strategic risk, tactical implementation, and performance of teams performing a computer simulation. Goal difficulty increased strategic risk, in part through team efficacy. Strategic risk partially mediated goal difficulty's effect on performance. Incentives reduced strategic risk for easy-goal teams and improved tactical implementation. Teams with both difficult goals and incentives achieved the highest performance. Team performance was positively affected by goal difficulty, team efficacy, strategic risk, and tactical implementation.

ACCESSION #

4377987

Tags: INCENTIVES in industry -- Research;  MONETARY incentives;  TEAMS in the workplace -- Management;  PRODUCTIVITY incentives;  PAY for performance;  SIMULATION methods;  GOAL setting in personnel management;  RISK management in business -- Economic aspects;  BUSINESS planning -- Research;  STRATEGIC planning -- Research;  EMPLOYEE motivation -- Management;  RISK-taking (Psychology) -- Economic aspects

 

Related Articles

• How to Make Pay for Performance Pay Off. Landsberg, Richard D. // Journal of Financial Service Professionals;Nov2009, Vol. 63 Issue 6, p12 

  This article discusses the best way to set up an offer of extra incentive pay to employees to meet certain deadlines or goals. Companies that engage in pay-for-performance plans need to be innovative in how they present their plan. Some executives believe they can outperform whatever their pay...

• Incentive Effects of Assigned Goals and Compensation Schemes on Budgetary Performance. Fatseas, Victor A.; Hirst, Mark K. // Accounting & Business Research (Wolters Kluwer UK);Autumn92, Vol. 22 Issue 88, p347 

  This study examines the combined effects of two management interventions, assigned goals and monetary compensation, on performance in a routine task. It investigates the effects of assigned goals (four goal levels: low, medium, high, impossible) and three types of compensation scheme (fixed-pay,...

• ORGANIZATIONAL CONTEXT AS A MODERATOR OF THEORIES ON FIRM BOUNDARIES FOR TECHNOLOGY SOURCING. Steensma, H. Kevin; Corley, Kevin G. // Academy of Management Journal;Apr2001, Vol. 44 Issue 2, p271 

  Three research theories used to explain firm boundaries are transaction cost economics, an options perspective, and a resource-based view of the firm. The authors' integrated model addresses the degree to which each of these three perspectives explains firm boundaries for technology sourcing is...

• BETRIEBSSTRUKTUR UND LOHNANREIZSYSTEM. Kr�sselberg, Hans-G�nter // K�lner Zeitschrift f�r Soziologie & Sozialpsychologie;1958, Vol. 10, p615 

  This article discusses the sociological problems facing the income incentive system (Lohnareizsystem) in West Germany. The author presents the results of an empirical study of the Lohnareizsystem in a repair shop setting. The rationalization tendencies in economics led to the rather large...

• CREATING A CULTURE OF Peak Performance. BROMLEY, TREVOR // Strategic Finance;Sep2004, Vol. 86 Issue 3, p34 

  The article focuses on the strategy employed by FreedomRoads, a national recreational vehicle retailer, to realize peak performance from their employees. The article discusses human resource initiatives to create performance programs, the four stages of performance, and the unique FreedomRoads...

• Linking goals to monetary incentives. Locke, Edwin A. // Academy of Management Executive;Nov2004, Vol. 18 Issue 4, p130 

  The article discusses the complexities of designing an employee incentive plan that works. The author argues that first and foremost, incentive systems must be paired with clear goals. Four methods of goal-based incentive programs are presented, as are their pros and cons. The first method...

• Incentive pay makes comeback among nonprofit execs. Welch, Sherri; Shea, Bill // Crain's Detroit Business;9/24/2012, Vol. 28 Issue 40, p1 

  The article reports on an analysis of the compensation of top-paid nonprofit executives in 2010 in Detroit, Michigan. The analysis found that the trend on the use of incentive pay as a component of compensation is returning to pre-recession levels among executives of grant-making foundations,...

• Dysfunctional Effects of Formal Planning: Two Theoretical Explanations. Bresser, Rudi K.; Bishop, Ronald C. // Academy of Management Review;Oct83, Vol. 8 Issue 4, p588 

  Kuhn's (1970, 1974) concept of paradigm development and the concept of dialectical materialism are used to demonstrate how formal planning may cause intraorganizational contradictions and endanger an organization's viability. These concepts are integrated by a model of planning...

• Management's Role in Planning. Hoadley, Walter E. // Academy of Management Proceedings (00650668);1974, p2 

  Successful corporate planning is almost impossible without top management's active participation and continuing support. Effective planning incorporates strategy and tactics in such a practical way that profit center managers and subordinates welcome it as a thoroughly useful system to enhance...

Read the Article