A value-based model of job performance

Abstract

This agent-based model contributes to a theory of corporate culture in which company performance and employees’ behaviour result from the interaction between financial incentives, motivational factors and endogenous social norms. Employees’ personal values are the main drivers of behaviour. They shape agents’ decisions about how much of their working time to devote to individual tasks, cooperative, and shirking activities. The model incorporates two aspects of the management style, analysed both in isolation and combination: (i) monitoring efforts affecting intrinsic motivation, i.e. the company is either trusting or controlling, and (ii) remuneration schemes affecting extrinsic motivation, i.e. individual or group rewards. The simulations show that financial incentives can (i) lead to inefficient levels of cooperation, and (ii) reinforce value-driven behaviours, amplified by emergent social norms. The company achieves the highest output with a flat wage and a trusting management. Employees that value self-direction highly are pivotal, since they are strongly (de-)motivated by the management style.

Comparisons of the effects of individual and collective performance-related pay on performance: A review

“…As we saw earlier, the interaction of reward interdependence and task interdependence jointly affected performance. Cooperation was solely influenced by task interdependence (consistent with Roos et al, 2022). However, the effect of cooperation on performance is moderated by reward interdependence, having no effect when rewards are individual.…”

“…Similar results were found by Aakvik et al (2017), who concluded that team processes which included an element of pressure enhanced cooperation, and that feedback on team and individual performance contributed to better performance under team incentives than individual ones, and consequently that "free-rider effects are not a serious problem" (p.117), at least in the customer service center that they studied. Amongst the non-field studies, Ladley et al (2015), using an agent-based model akin to Roos et al (2022), also show that free riding does not survive peer pressure, at least in the medium-to long-term. They compare groups selected and rewarded on the basis of group performance, which are therefore heterogeneous, with groups composed on the basis of individual performance who are rewarded individually.…”

“…Only Roos et al (2022) include intrinsic motivation in their investigation; we saw earlier that it plays a role in their model. Shirking is reduced to a minimum by a management style environment that gives employees high levels of autonomy, while in controlling environments lack of fulfilment of the autonomy need reduces intrinsic motivation, consistent with self-determination theory.…”

Calidad De Vida Laboral Y Compromiso Organizacional en Una Institución Pública - Peruana 2022

“…Por ejemplo, si la escuela paga la capacitación; Construir la organización y las relaciones. En este tipo de colaboración, se posibilita un fuerte compromiso con la organización por parte de los empleados que se sienten valorados por la organización que les dio la oportunidad o el regalo que recibieron, (Ross, Reale y Banning, 2022).…”

Sustainability-oriented entrepreneurial intentions: work values and the theory of planned behaviour

“…These values can influence an individual's career choices, job satisfaction, and overall engagement with their work (Baranik et al ., 2022). Recent literature delineates Extrinsic Rewards, Intrinsic Rewards and Job Security as constituents of Work Values that drive behaviour aligned with societal and environmental well-being (Roos et al ., 2022; Venketsamy and Lew, 2022).…”