Articles questions

Question 1

According to Christ et al., bonus contracts are especially preferred in ……….

Answer 1

incomplete contract setting

Question 2

According to Maas and Van Rinsum (2013), employees are more likely to overstate if…

Answer 2

this increases monetary payoff of others

Question 3

According to Maas and Van Rinsum (2013) reporting honesty is higher in the following setting:

Answer 3

open information policy

Question 4

According to Hannan et al. (2013) why does the performance not increase as much in case one has a choice how to allocate their effort?

Answer 4

because the RPI leads to distortion in effort allocations

Question 5

What effect of tangible rewards compared to cash rewards did Kachelmeier et al. (2023) find?

Answer 5

resulted in less effort and perrformance, but this effect was more pronounced and only significant in group context

Question 6

According to kachelmeier et al. (2023) how can the negative effect of a tangible reward on effort be mitigated in group settings?

Answer 6

by structuring as a shared experience instead of a reward offered for individual consumption

Question 7

what is the condition to use shared experiences as rewards?

Answer 7

the coworkers should have positive relationships

Question 8

what is meant by surrogation as stated by choi et al. (2012) ?

Answer 8

lack of realisation that measures are merely representations of the strategic construct of interest instead of the construct of interest themselves

Question 9

In which case is surrogation more prevalent? (choi et al. 2012)

Answer 9

when managers are compensated on a single measure of a strategic construct (vs when compensated on multiple measures)

Question 10

managers are ….. willing to adjust compensation when …. of ….. …… is …. to avoid setting a …..
(Bol et al., 2015)

Answer 10

Managers are less willing to adjust when the likelihood of future events is high to avoid setting a precedent

Question 11

What do Bol et al. find about compensation interdependence and descretionary adjustments?

Answer 11

Managers are less willing to adjust when compensation interdependence is high, to avoid demotivating unaffected employees.

Question 12

Which types of effort do Bol et al. (2015) distinguish? And how do these relate to discretionary adjustments?

Answer 12

Conventional and adaptive effort. Conventional effort may increase due to discretionary adjustments while adaptive effort may decrease

Question 13

Difference in managers’ willingness to make discretionary adjustments across high and low event likelihood is greater when …. …. is low than when it is high. (Bol et al., 2015)

Answer 13

compensation interdependence

Question 14

In bol et al. (2015), what influences managers in high interdependence settings regarding the choice to make descretionary adjustments?

Answer 14

the potential demotivating effect their adjustments could have on other employees

Question 15

What attitude of managaers makes them less likely to make discretionary adjustments? (Bol et al., 2015)

Answer 15

appreciating a solely objective performance plan

Question 16

Which two attitude traits makes managers more likely to make discretionary adjustments (Bol et al. 2015)

Answer 16

• strong believe in the controllability principle.
• believe that accuracy in compensation is attainable

Question 17

According to Anderson et al. (2017), which two variables significantly affect the buyer manager’s (initial trust)?

Answer 17

• autonomy to select suppliers
• supplier’s information sharing behaviour

Question 18

Which two variables are influenced by buyer manager’s (initial) trust?

Answer 18

• negatively: spending on monitoring and control
• positively: investment in collaborative project

Question 19

Which notion regarding trust do Anderson et al. (2017) challenge?

Answer 19

The notion that trust arises strictly from experience

Question 20

according to pencle et al. (2023), which two variables are associiated with selecting more sustainable suppliers? And what important notion should be made?

Answer 20

• paradoxical frame
• evaluation using broad PMS

notion: they are only significantly beneficial if used simultaneously

Question 21

According to Hannan et al. (2012), RPI’s have an influence on effort allocation and performance. What influences this?

Answer 21

whether the RPI is public or not. If public, it increases performance only if they do not have a choice how to allocate their effort because there would otherwise be distortion effects

Question 22

According to Kachelmeier te al. (2023), why do tangible group awards impair performance more than individual tangible rewards?

Answer 22

performaince is impaired due to uncertainty about how others would perceive the reward

Question 23

According to Kachelmeier et al. (2023), why does framing a tangible group reward as a shared experience mitigate the negative effects

Answer 23

• makes people like it more themselves
• reduces uncertainty about the others liking it

Question 24

Why does RPI lead to better performance, according to Hannan et al. ?

Answer 24

PRI, leads to social comparision, which in turn induces motivation effects, and consequently leads to increased performance

Question 25

In which case can effort distortion be beneficial according to Hannan et al.?

Answer 25

When tasks have increasing marginal returns to effort instead of diminishing marginal returns

Question 26

Investigating the effect of compensation on surrogation using archival or field data is challenging because of the difficulty of distinguishing surrogation from ………………..
(Choi et al.)

Answer 26

wealth-maximizing behavior

Question 27

Which effect is the source of all statistical significance in the experiment by Bol et al.?

Answer 27

the simple effect of low versus high event likelihood in the interdependence absent condition (NB therefore the interaction term likelihood * bonus interdependence is also significant)

Question 28

Which two components of trust are distinguished by Anderson et al.?

Answer 28

• competence trust
• goodwill trust

Question 29

the association between ………. and competence trust is weaker than that for goodwill trust (Anderson et al.)

Answer 29

information sharing behaviour

Question 30

While …. …. reduces spending on controls and increases investment in the collaboration, …. ….. reduces ….. but has no effect on ……………

Answer 30

competence trust, goodwill trust, spending on control, investment in the collaboration

Question 31

What economic-psychological reason for prefering bonus contracts is stated by Christ et al. ?

Answer 31

loss-aversion; the notion that the disutility experienceed from a loss is greater than the utility experienced from a gain of the same maginitude

Question 32

Which underlying driver makes agents less likely to misreport when this negatively influences peers or this information is openly available to others?

Answer 32

disutility experienced from manipulating results to unfair outcomes or violating social norms