Performance-Contingent Rewards and Self-Efficacy : Moderating Effects of Timing of Reward Determination and Performance Standards

Purpose – The purpose of this study is to determine the moderating effects of the timing of reward determination and performance standards on the relationship between performance-contingent rewards and self-efficacy.Design/methodology/approach – The sample included 568 participants from Amazon Mechanical Turk. They were provided with a webpage developed purposely for our online experiment. The model was tested for mediation and moderation processes using regression analysis and ANOVA.Findings – We found a mediating effect of self-efficacy between performance-contingent rewards and intrinsic motivation. A moderating effect of performance standards (absolute, relative, ambiguous) on the relationship between performance-contingent rewards and self-efficacy was also found. Performance standards were found to be more important moderators than the timing of reward determination.Research limitations/implications – We suggested the concept of reward determining timing, and verified cognitive evaluation theory empirically. Limitations can be caused by the methodology, online experiment.Practical implications – People measure their own efficacy or competence by comparing themselves with others more than with performance standards. Use of relative performance standards should be considered to increase self-efficacy and intrinsic motivation of employees.Originality/value – This study describes the importance of the timing of reward determination (i.e., before or after completion of a performance-related task)