Employees are more motivated to work because of the promise of reward rather than the possibility of being punished for poor performance. This is the suggestion of new research published in The Accounting Review, which found that people are less likely to be motivated at work by the prospect of punishment for failure to meet targets.
Investigators from Michigan State University (MSU), the University of Georgia and Emory University discovered staff members involved in a bonus programme work harder than those who operate under a penalty system – such as those threatening pay reductions and demotions.
Karen Sedatole, Associate Professor of Accounting in the Broad College of Business at MSU, noted: “Our findings show what carrots work better than sticks – in other words, workers respond better to bonuses than penalties.” Entitled Sticks and Carrots: The Effect of Contract Frame on Effort in Incomplete Contracts, the report also suggested employees working in a rewarding environment tend to place greater trust in their supervisors.
available ranging from €5,000 to €25,000 over 1 to 5 years at the EU reference rate for unsecured lending. The micro-loan fund will operate on a competitive basis with bi-annual calls for applications. The first “Call for Applications” opens on Friday, 29th June, 2012 and closes on Friday, 31st August, 2012 at 4pm.
