Monday, 24 November 2008

Behavioural bonuses

Today via someone else (sorry I don't remember who) I came across a recent piece by behavioural economist Dan Ariely in the New York Times on whether bonuses work or not. Now this is based on some experiments, rather than real-life examples, but worth a look:
[U]ndergraduate students were offered the chance to earn a high bonus ($600) or a lower one ($60) by performing one task that called for some cognitive skill (adding numbers) and another one that required only a mechanical skill (tapping a key as fast as possible). We found that as long as the task involved only mechanical skill, bonuses worked as would be expected: the higher the pay, the better the performance. But when we included a task that required even rudimentary cognitive skill, the outcome was the same as in the India study: the offer of a higher bonus led to poorer performance.

Funnily enough I seem to remember something similar in Tim Harford's most recent book - incentive pay only really works very effectively when there is a relatively straightfoward and standardised task and where performance in the task can be accurately measured. So that rules out a lot of activity where people earn really big bonuses.

But arguably the more interesting bit in the Dan Ariely article is the effect of public scrutiny:
We asked 39 participants to solve anagram puzzles, sometimes privately in a cubicle and sometimes in front of the others. We reasoned that their motivation to do well would be higher in public, and we wanted to see if this would affect their performance. But we found that while the subjects wanted to perform better when they worked in front of others, in fact they did worse.
So it turns out that social pressure has the same effect that money has. It motivates people, especially when the tasks at hand require only effort and no skill. But it can provide stress, too, and at some point that stress overwhelms the motivating influence.

So two factors that might ordinarily be assumed to encourage better performance may actually have the opposite impact. This seems to be something worth exploring, to put it mildly.

3 comments:

Nick Drew said...

you are clearly right, the whole bonus dynamics deserve investigation

but be in no doubt, onehelluvalot of humanity is willing to change its behaviours for bonus-type rewards

I have seen outright fetish reactions to even quite small bonus carrots, in a way that salary & promotion doesn't seem achieve

Tom P said...

Somebody in the investor community really ought to have a proper look at this one. I agree that some people simply ARE motivated by bonuses, but there seems to be a lot of other stuff going on.

fetish reactions? you mean like Tory MPs with oranges? :-)

will said...

A片,A片,A片,A片,A片,A片情趣用品,情趣,A片,AIO,AV,AV女優,A漫,免費A片,AIO交友愛情館,愛情公寓,情色,情色貼圖,色情小說,情色小說,情色文學,色情,寄情築園小遊戲,色情遊戲,嘟嘟情人色網,一葉情貼圖片區,情色論壇,色情影片,微風成人,嘟嘟成人網,成人,18成人,成人影城,成人圖片區,成人圖片,成人貼圖,UT聊天室,聊天室,豆豆聊天室,哈啦聊天室,尋夢園聊天室,聊天室尋夢園,視訊聊天室,視訊聊天

麻將,台灣彩卷,六合彩開獎號碼,運動彩卷,六合彩,線上遊戲,矽谷麻將,明星3缺一,橘子町,麻將大悶鍋,台客麻將,公博,game,,中華職棒,麗的線上小遊戲,國士無雙麻將,麻將館,賭博遊戲,威力彩,威力彩開獎號碼,龍龍運動網,史萊姆,史萊姆好玩遊戲,史萊姆第一個家,史萊姆好玩遊戲區,樂透彩開獎號碼,遊戲天堂,好玩遊戲,遊戲基地,無料遊戲王,好玩遊戲區,麻將遊戲,好玩遊戲區,小遊戲,遊戲區,電玩快打,cs online情趣用品,情趣,情趣商品,A片,AIO交友愛情館,AIOAV女優,AV,A漫,免費A片,本土自拍,自拍,愛情公寓,情色,情色貼圖,色情小說,情色小說,情色文學,色情,寄情築園小遊戲,色情遊戲,色情影片,情色網,色情網站,微風成人區,微風成人,嘟嘟成人網,成人,18成人,成人影城,成人圖片區,成人圖片,成人貼圖,成人文章,成人小說,UT聊天室,聊天室,豆豆聊天室,哈啦聊天室,尋夢園聊天室,聊天室尋夢園,080中部人聊天室,080聊天室,中部人聊天室,080苗栗人聊天室,苗栗人聊天室,免費視訊聊天,免費視訊,視訊聊天室,視訊聊天情趣用品,情趣,情趣商品,愛情公寓,情色,情色貼圖,色情小說,情色小說,情色文學,色情,寄情築園小遊戲,色情遊戲,AIO交友愛情館,一葉情貼圖片區,情色論壇,色情影片,色情網站,微風成人區,微風成人,嘟嘟成人網,成人,18成人,成人影城,成人圖片,成人貼圖,成人圖片區,成人文章,成人小說,A片,AV女優,AV,A漫,免費A片,自拍,UT聊天室,聊天室,豆豆聊天室,哈啦聊天室,尋夢園聊天室,聊天室尋夢園,080中部人聊天室,080聊天室,080苗栗人聊天室情趣用品,情趣,情趣商品,愛情公寓,情色,情色貼圖,色情小說,情色小說,情色文學,色情,做愛,寄情築園小遊戲,色情遊戲,AIO交友愛情館,AIO,色情影片,情色網,微風成人,嘟嘟成人網,成人,18成人,成人影城,成人圖片,成人貼圖,成人圖片區,成人文章,成人小說,成人電影,麗的色遊戲,自拍,A片,AV女優,AV,A漫,視訊交友網,視訊,視訊交友,免費視訊聊天室,免費視訊,視訊聊天,視訊聊天室,UT聊天室,聊天室,豆豆聊天室,哈啦聊天室,尋夢園聊天室,聊天室尋夢園,中古車,二手車情色貼圖,日本A片,A片下載,情色A片,AV女優,A漫,免費A片,微風成人,成人網站,成人光碟,嘟嘟成人網,成人,成人影城A片,A片,A片下載,做愛,成人電影,18成人,日本A片,情色小說,情色電影,成人影城,自拍,情色論壇,成人論壇,情色貼圖,情色,免費A片,成人,成人光碟