Mediating Roles of Self-Set Goals, Goal Commitment, Self-Efficacy, and Attractiveness in the Incentive-Performance Relation

The effects of monetary incentives on performance were examined in 2 studies. These effects were hypothesized to be through the intermediary motivational processes of self-efficacy, attractiveness ratings, goal level, and goal commitment. In Study 1, 80 subjects worked solving anagrams on 8 trials under 1 of 4 monetary incentive conditions (piece rate, hourly rate, competitive bonus, and goal attainment bonus). In Study 2, 146 subjects worked solving anagrams on 4 trials under 1 of 4 monetary incentive conditions (piece rate, informed bonus, uninformed bonus, and assigned bonus). In both studies, subjects self-set goal levels both before and after the incen- tive manipulation. Results from both studies indicated that tying rewards to goal attainment resulted in subjects having lower goal levels and lower self-efficacy, whereas piece-rate systems resulted in higher goal levels and higher self-efficacy. In addition, goal levels and self-efficacy partially mediated the relation between incentives and performance.