The Carrot vs. the Stick in Work Team Motivation
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- David L. Dickinson Ph.D., Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: This paper reports on the use of carrot (positive) and stick (negative) incentives as
methods of increasing effort among members of work teams. We study teams of four members
in a laboratory environment in which giving effort towards the team goal is simulated by
eliciting voluntary contributions towards the provision of a public good. We test the efficiencyimproving
properties of four distinct environments: monetary prizes given to high contributors
versus monetary fines assessed to low contributors, where high/low contributor is defined first in
terms of absolute contributions and then in terms of contributions relative to abilities—which we
call handicapping. Our results show that both carrot and stick can increase efficiency (i.e.,
contributions) levels by 10-28%. We find that handicapped incentives promise the highest
efficiency levels, and when handicapping is not used penalties may be more effective than
prizes. The implications for work teams and suggestions for practical implementation are
discussed.
The Carrot vs. the Stick in Work Team Motivation
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Additional Information
- Publication
- Dickinson, David L. (2001), The Carrot vs. the Stick in Work Team Motivation. Experimental Economics, 4(1): 107-124. (June 2001) Published by Springer Verlag. (ISSN: 1573-6938) The original publication is available at www.springerlink.com.
- Language: English
- Date: 2001