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The Influence of Monetary Incentives on Goal Choice, Goal Commitment, and Task Performance

The purpose of this study was to determine the mechanism by which monetary incentives influence goal choice, goal commitment, and task performance. It was hypothesized that monetary incentives influence cognitions that determine these events. One hundred and thirty subjects recruited for a work simulation study were assigned randomly to groups that differed in terms of the magnitude of incentive offered for various levels of performance. Overall the results suggest that the effects of monetary incentives on goals and performance may be explained, in part, by their influence on the process of goal choice. Goal choice and commitment were positively related to performance. Also, goals mediated the effects of incentives on performance. A research model is proposed for use in predicting performance. Keywords: Goal setting, Motivation, Expectancy theory.

Also, goals mediated the effects of incentives on performance. A research model is proposed for use in predicting performance. Keywords: Goal setting, Motivation, Expectancy theory.