The purpose of this paper is to investigate the additive and differential effects of short-term-oriented group incentives (STOGIs) and long-term-oriented group incentives (LTOGIs…
Abstract
Purpose
The purpose of this paper is to investigate the additive and differential effects of short-term-oriented group incentives (STOGIs) and long-term-oriented group incentives (LTOGIs) on psychological ownership and organizational commitment.
Design/methodology/approach
This study analyzed data from 17,255 US employees in the 2005 data set of the National Bureau of Economic Research Shared Capitalism Research.
Findings
Both additive indices of group incentives have direct positive relationships with psychological ownership and organizational commitment, as well as indirect positive relationships with organizational commitment through psychological ownership. STOGIs have a stronger relationship with organizational commitment and LTOGIs have a stronger relationship with psychological ownership.
Originality/value
The value of this research lies in exploring the differential effects of short-and long-term group incentives, which provides new insight into the theory of group incentives and practical implications for their effective utilization.
Details
Keywords
Andrea Kim, Kyongji Han, Joseph R. Blasi and Douglas L. Kruse
Building on economic and psychological ownership theories, this study investigates whether group incentives can reduce shirking because these practices enable employees to feel…
Abstract
Building on economic and psychological ownership theories, this study investigates whether group incentives can reduce shirking because these practices enable employees to feel psychological ownership that motivates them to prevent their own and coworkers shirking in a collective work setting. We analyzed a sample of 38,475 employees in eight companies that participated in the survey administered by the National Bureau of Economic Research (NBER) in 2005. Our findings reveal that (1) short-term-oriented group incentives (STOGIs) and long-term-oriented group incentives (LTOGIs) are positively related to self-shirking regulation and coworker-shirking intervention; (2) STOGIs have stronger relationships with these anti-shirking outcomes than LTOGIs; and (3) the interaction between LTOGIs and formal training is positively related to these anti-shirking outcomes. Although some scholars are concerned about the free rider problem in the collective working and rewarding structure, our work demonstrates how and why employee shirking may be mitigated in such settings.