Mission and the Bottom Line
The impact of performance pay in institutions with multiple goals depends on complementarities in the disutility cost of effort and how different tasks interact to achieve each goal. Workers of a mission-oriented nonprofit were randomly assigned to one of two bonus schemes, each incentivizing one of its two main operational goals: the performance of its microcredit program and the strengthening of community institutions of the poor. This study finds that the credit bonus improved credit-related outcomes but it undermined the social outcome. In contrast, the social bonus advanced the social mission as well as the microcredit program, but only for employees working alone, undermining the performance of employees working in teams. These results cannot be explained by a standard multitask principal-agent model featuring only complementarities in the disutility cost of effort. Instead, they suggest that production complementarities are also relevant.
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Format: | Working Paper biblioteca |
Language: | English |
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World Bank, Washington, DC
2017-12
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Subjects: | COMPLEMENTARITIES, INCENTIVES, INTRINSIC MOTIVATION, TEAMWORK, PERFORMANCE PAY, MICROCREDIT, COMMUNITY INSTITUTIONS, |
Online Access: | http://documents.worldbank.org/curated/en/757341513086147069/Mission-and-the-bottom-line-performance-incentives-in-a-multi-goal-organization https://hdl.handle.net/10986/29006 |
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dig-okr-10986290062024-07-28T08:01:11Z Mission and the Bottom Line Performance Incentives in a Multi-Goal Organization Shrestha, Slesh A. Gine, Xavier Mansuri, Ghazala COMPLEMENTARITIES INCENTIVES INTRINSIC MOTIVATION TEAMWORK PERFORMANCE PAY MICROCREDIT COMMUNITY INSTITUTIONS The impact of performance pay in institutions with multiple goals depends on complementarities in the disutility cost of effort and how different tasks interact to achieve each goal. Workers of a mission-oriented nonprofit were randomly assigned to one of two bonus schemes, each incentivizing one of its two main operational goals: the performance of its microcredit program and the strengthening of community institutions of the poor. This study finds that the credit bonus improved credit-related outcomes but it undermined the social outcome. In contrast, the social bonus advanced the social mission as well as the microcredit program, but only for employees working alone, undermining the performance of employees working in teams. These results cannot be explained by a standard multitask principal-agent model featuring only complementarities in the disutility cost of effort. Instead, they suggest that production complementarities are also relevant. 2017-12-15T18:06:12Z 2017-12-15T18:06:12Z 2017-12 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/757341513086147069/Mission-and-the-bottom-line-performance-incentives-in-a-multi-goal-organization https://hdl.handle.net/10986/29006 English Policy Research Working Paper;No. 8270 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf text/plain World Bank, Washington, DC |
institution |
Banco Mundial |
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country |
Estados Unidos |
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US |
component |
Bibliográfico |
access |
En linea |
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tag |
biblioteca |
region |
America del Norte |
libraryname |
Biblioteca del Banco Mundial |
language |
English |
topic |
COMPLEMENTARITIES INCENTIVES INTRINSIC MOTIVATION TEAMWORK PERFORMANCE PAY MICROCREDIT COMMUNITY INSTITUTIONS COMPLEMENTARITIES INCENTIVES INTRINSIC MOTIVATION TEAMWORK PERFORMANCE PAY MICROCREDIT COMMUNITY INSTITUTIONS |
spellingShingle |
COMPLEMENTARITIES INCENTIVES INTRINSIC MOTIVATION TEAMWORK PERFORMANCE PAY MICROCREDIT COMMUNITY INSTITUTIONS COMPLEMENTARITIES INCENTIVES INTRINSIC MOTIVATION TEAMWORK PERFORMANCE PAY MICROCREDIT COMMUNITY INSTITUTIONS Shrestha, Slesh A. Gine, Xavier Mansuri, Ghazala Mission and the Bottom Line |
description |
The impact of performance pay in
institutions with multiple goals depends on
complementarities in the disutility cost of effort and how
different tasks interact to achieve each goal. Workers of a
mission-oriented nonprofit were randomly assigned to one of
two bonus schemes, each incentivizing one of its two main
operational goals: the performance of its microcredit
program and the strengthening of community institutions of
the poor. This study finds that the credit bonus improved
credit-related outcomes but it undermined the social
outcome. In contrast, the social bonus advanced the social
mission as well as the microcredit program, but only for
employees working alone, undermining the performance of
employees working in teams. These results cannot be
explained by a standard multitask principal-agent model
featuring only complementarities in the disutility cost of
effort. Instead, they suggest that production
complementarities are also relevant. |
format |
Working Paper |
topic_facet |
COMPLEMENTARITIES INCENTIVES INTRINSIC MOTIVATION TEAMWORK PERFORMANCE PAY MICROCREDIT COMMUNITY INSTITUTIONS |
author |
Shrestha, Slesh A. Gine, Xavier Mansuri, Ghazala |
author_facet |
Shrestha, Slesh A. Gine, Xavier Mansuri, Ghazala |
author_sort |
Shrestha, Slesh A. |
title |
Mission and the Bottom Line |
title_short |
Mission and the Bottom Line |
title_full |
Mission and the Bottom Line |
title_fullStr |
Mission and the Bottom Line |
title_full_unstemmed |
Mission and the Bottom Line |
title_sort |
mission and the bottom line |
publisher |
World Bank, Washington, DC |
publishDate |
2017-12 |
url |
http://documents.worldbank.org/curated/en/757341513086147069/Mission-and-the-bottom-line-performance-incentives-in-a-multi-goal-organization https://hdl.handle.net/10986/29006 |
work_keys_str_mv |
AT shresthaslesha missionandthebottomline AT ginexavier missionandthebottomline AT mansurighazala missionandthebottomline AT shresthaslesha performanceincentivesinamultigoalorganization AT ginexavier performanceincentivesinamultigoalorganization AT mansurighazala performanceincentivesinamultigoalorganization |
_version_ |
1806032006545408000 |