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How Does Goal Setting Incentivize Workers in the Tournament Reward Scheme with Sabotage? Theory and Evidence

Research Project

Project/Area Number 18K12862
Research Category

Grant-in-Aid for Early-Career Scientists

Allocation TypeMulti-year Fund
Review Section Basic Section 07080:Business administration-related
Research InstitutionInternational University of Japan

Principal Investigator

Tang Cheng-Tao  国際大学, 国際関係学研究科, 講師(移行) (00799330)

Project Period (FY) 2018-04-01 – 2020-03-31
Project Status Completed (Fiscal Year 2019)
Budget Amount *help
¥1,820,000 (Direct Cost: ¥1,400,000、Indirect Cost: ¥420,000)
Fiscal Year 2019: ¥260,000 (Direct Cost: ¥200,000、Indirect Cost: ¥60,000)
Fiscal Year 2018: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
KeywordsTournament / Goal setting / Sabotage / Tourname / Goal Setting
Outline of Final Research Achievements

This paper investigates the effects of goal setting in the tournament-like reward scheme where agents have two-dimension activities: productive effort and sabotage activities. Our theoretical model predicts that goal setting (within an appropriate range) in tournament can play a positive role: both increase productive effort and decrease sabotage activities. Consistent with theory, the results from our laboratory experiment confirm the positive effects of goal setting in tournament. However, contrary to the theory, we find the effect of goal setting diminishes as the financial incentives (bonus) increases. Financial incentives become dysfunctional when high goals are implemented. Overall, high goals increase performances more than higher financial incentives.

Academic Significance and Societal Importance of the Research Achievements

The theoretical analyses in this project help to explain the commonly observed coexistence of goal setting and tournament schemes. The empirical results provides empirical evidence that, implementing goal setting in the tournament can be effective if organizations suffer from sabotage behavior.

Report

(3 results)
  • 2019 Annual Research Report   Final Research Report ( PDF )
  • 2018 Research-status Report
  • Research Products

    (3 results)

All 2020 Other

All Int'l Joint Research (1 results) Remarks (1 results) Funded Workshop (1 results)

  • [Int'l Joint Research] Le Zhang/Macquarie University/Macquarie Graduate School of Management(オーストラリア)

    • Related Report
      2019 Annual Research Report
  • [Remarks] Working paper: Tang_Zhang_2020 (see URL below)

    • URL

      https://www.dropbox.com/s/knewzi8enlcadgu/Tang_Zhang_2020.pdf?dl=0

    • Related Report
      2019 Annual Research Report
  • [Funded Workshop] Taiwan Economic Research workshop2020

    • Related Report
      2019 Annual Research Report

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Published: 2018-04-23   Modified: 2023-12-25  

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