|
Measuring and Motivating Quantity, Creativity, or Both
Steven J. Kachelmeier, The University of Texas at Austin
Bernhard E. Reichert, The University of Texas at Austin
Michael G. Williamson, The University of Texas at Austin
ABSTRACT. We examine how worker productivity differs when performance-based pay is based on measures of quantity, creativity, or the product of both measures. In an experimental task in which participants design rebus puzzles, we find that quantity-based pay increases the number of puzzles produced, and that creativity-based pay improves average creativity ratings. However, a weighted pay scheme that rewards the product of quantity and average creativity ratings results in weighted productivity scores that are significantly lower than those generated by participants with quantity incentives alone. Further, relative to participants compensated solely for quantity, participants in the weighted condition produce approximately the same number of high-creativity puzzles, but produce significantly fewer puzzles of mediocre creativity. Implications address a possible explanation for why firms are reluctant to incorporate creativity measures within multi dimensional performance measurement systems.
Full-Text is no longer available online. Please contact the author(s) for more information about this manuscript.
Back to Session Listing
|