Team incentives and leadership

We study, experimentally, how two alternative incentive mechanisms affect team performance and how a team chooses between alternative mechanisms. We study a group incentive mechanism (team output is shared equally among team members) and a hierarchical mechanism (team output is allocated by a team l...

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Main Authors: Drouvelis, Michalis, Nosenzo, Daniele, Sefton, Martin
Format: Article
Published: Elsevier 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/44193/
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author Drouvelis, Michalis
Nosenzo, Daniele
Sefton, Martin
author_facet Drouvelis, Michalis
Nosenzo, Daniele
Sefton, Martin
author_sort Drouvelis, Michalis
building Nottingham Research Data Repository
collection Online Access
description We study, experimentally, how two alternative incentive mechanisms affect team performance and how a team chooses between alternative mechanisms. We study a group incentive mechanism (team output is shared equally among team members) and a hierarchical mechanism (team output is allocated by a team leader). We find that output is higher when a leader has the power to allocate output, but this mechanism also generates large differences between earnings of leaders and other team members. When team members can choose how much of team output is to be shared equally and how much is to be allocated by a leader they tend to restrict the leader’s power to distributing less than half of the pie.
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publishDate 2017
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spelling nottingham-441932020-05-04T18:55:08Z https://eprints.nottingham.ac.uk/44193/ Team incentives and leadership Drouvelis, Michalis Nosenzo, Daniele Sefton, Martin We study, experimentally, how two alternative incentive mechanisms affect team performance and how a team chooses between alternative mechanisms. We study a group incentive mechanism (team output is shared equally among team members) and a hierarchical mechanism (team output is allocated by a team leader). We find that output is higher when a leader has the power to allocate output, but this mechanism also generates large differences between earnings of leaders and other team members. When team members can choose how much of team output is to be shared equally and how much is to be allocated by a leader they tend to restrict the leader’s power to distributing less than half of the pie. Elsevier 2017-07-13 Article PeerReviewed Drouvelis, Michalis, Nosenzo, Daniele and Sefton, Martin (2017) Team incentives and leadership. Journal of Economic Psychology, 62 . pp. 173-185. ISSN 0167-4870 Team Production; Leadership; Reward Power; Delegation; Experiment http://www.sciencedirect.com/science/article/pii/S0167487016304354 doi:10.1016/j.joep.2017.07.002 doi:10.1016/j.joep.2017.07.002
spellingShingle Team Production; Leadership; Reward Power; Delegation; Experiment
Drouvelis, Michalis
Nosenzo, Daniele
Sefton, Martin
Team incentives and leadership
title Team incentives and leadership
title_full Team incentives and leadership
title_fullStr Team incentives and leadership
title_full_unstemmed Team incentives and leadership
title_short Team incentives and leadership
title_sort team incentives and leadership
topic Team Production; Leadership; Reward Power; Delegation; Experiment
url https://eprints.nottingham.ac.uk/44193/
https://eprints.nottingham.ac.uk/44193/
https://eprints.nottingham.ac.uk/44193/