Articles questions Flashcards
According to Christ et al., bonus contracts are especially preferred in ……….
incomplete contract setting
According to Maas and Van Rinsum (2013), employees are more likely to overstate if…
this increases monetary payoff of others
According to Maas and Van Rinsum (2013) reporting honesty is higher in the following setting:
open information policy
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?
because the RPI leads to distortion in effort allocations
What effect of tangible rewards compared to cash rewards did Kachelmeier et al. (2023) find?
resulted in less effort and perrformance, but this effect was more pronounced and only significant in group context
According to kachelmeier et al. (2023) how can the negative effect of a tangible reward on effort be mitigated in group settings?
by structuring as a shared experience instead of a reward offered for individual consumption
what is the condition to use shared experiences as rewards?
the coworkers should have positive relationships
what is meant by surrogation as stated by choi et al. (2012) ?
lack of realisation that measures are merely representations of the strategic construct of interest instead of the construct of interest themselves
In which case is surrogation more prevalent? (choi et al. 2012)
when managers are compensated on a single measure of a strategic construct (vs when compensated on multiple measures)
managers are ….. willing to adjust compensation when …. of ….. …… is …. to avoid setting a …..
(Bol et al., 2015)
Managers are less willing to adjust when the likelihood of future events is high to avoid setting a precedent
What do Bol et al. find about compensation interdependence and descretionary adjustments?
Managers are less willing to adjust when compensation interdependence is high, to avoid demotivating unaffected employees.
Which types of effort do Bol et al. (2015) distinguish? And how do these relate to discretionary adjustments?
Conventional and adaptive effort. Conventional effort may increase due to discretionary adjustments while adaptive effort may decrease
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)
compensation interdependence
In bol et al. (2015), what influences managers in high interdependence settings regarding the choice to make descretionary adjustments?
the potential demotivating effect their adjustments could have on other employees
What attitude of managaers makes them less likely to make discretionary adjustments? (Bol et al., 2015)
appreciating a solely objective performance plan
Which two attitude traits makes managers more likely to make discretionary adjustments (Bol et al. 2015)
- strong believe in the controllability principle.
- believe that accuracy in compensation is attainable
According to Anderson et al. (2017), which two variables significantly affect the buyer manager’s (initial trust)?
- autonomy to select suppliers
- supplier’s information sharing behaviour
Which two variables are influenced by buyer manager’s (initial) trust?
- negatively: spending on monitoring and control
- positively: investment in collaborative project
Which notion regarding trust do Anderson et al. (2017) challenge?
The notion that trust arises strictly from experience
according to pencle et al. (2023), which two variables are associiated with selecting more sustainable suppliers? And what important notion should be made?
- paradoxical frame
- evaluation using broad PMS
notion: they are only significantly beneficial if used simultaneously
According to Hannan et al. (2012), RPI’s have an influence on effort allocation and performance. What influences this?
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
According to Kachelmeier te al. (2023), why do tangible group awards impair performance more than individual tangible rewards?
performaince is impaired due to uncertainty about how others would perceive the reward
According to Kachelmeier et al. (2023), why does framing a tangible group reward as a shared experience mitigate the negative effects
- makes people like it more themselves
- reduces uncertainty about the others liking it
Why does RPI lead to better performance, according to Hannan et al. ?
PRI, leads to social comparision, which in turn induces motivation effects, and consequently leads to increased performance
In which case can effort distortion be beneficial according to Hannan et al.?
When tasks have increasing marginal returns to effort instead of diminishing marginal returns
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.)
wealth-maximizing behavior
Which effect is the source of all statistical significance in the experiment by Bol et al.?
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)
Which two components of trust are distinguished by Anderson et al.?
- competence trust
- goodwill trust
the association between ………. and competence trust is weaker than that for goodwill trust (Anderson et al.)
information sharing behaviour
While …. …. reduces spending on controls and increases investment in the collaboration, …. ….. reduces ….. but has no effect on ……………
competence trust, goodwill trust, spending on control, investment in the collaboration
What economic-psychological reason for prefering bonus contracts is stated by Christ et al. ?
loss-aversion; the notion that the disutility experienceed from a loss is greater than the utility experienced from a gain of the same maginitude
Which underlying driver makes agents less likely to misreport when this negatively influences peers or this information is openly available to others?
disutility experienced from manipulating results to unfair outcomes or violating social norms
