Group Size and Trophy Value of Symbolic Rewards: Their Impacts on Effort-Evidence from a Real Effort Experiment-

*Andrea Hammermann
International Human Resource Management, RWTH Aachen Univers

Alwine Mohnen
International Human Resource Management, RWTH Aachen University

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     Last modified: January 6, 2011
     Presentation date: 03/12/2011 9:00 AM in NH 1130, Session B
     (View Schedule)

Abstract
We analyze the motivational effect on work performance of symbolic rewards through status disclosure in a real effort lab experiment; and we provide evidence that the implementation of awards with no monetary attachment can increase performance. The experimental design allows us to separate the ‘award effect’ from a mere ‘feedback effect’. We use buttons as awards in the colors of the Olympic medals. Therefore, on the one hand no monetary value is attached to our reward, and on the other hand its meaning is unambiguously clear owing to our linking it to sport tournaments. However, our results show that the motivation effect of awards cannot be taken for granted but depends on the breadth of hierarchy levels and the initial relative standing of performers amongst each other. In smaller groups, awards have a stronger incentive effect because the absolute number of winners and losers decreases and work performance is more exposed. This enhances the trophy value and intensifies the feelings of distinction or disgrace due to status disclosure. Furthermore, top performers, who have a reasonable chance of being one of the winners of the tournament, show a greater work enhancement due to status disclosure by the awards.