Abstract
This technical chapter provides empirical evidence for the first laboratory scenario-based experiment (Study 1) that addresses how individual differences in personality interact with excessive extrinsic rewards, leading to employee cooperation. As such, this chapter sets out to (i) dispel the conflict on the efficacy of excessive extrinsic rewards, (ii) decompose individual differences among employees in their interaction with excessive extrinsic rewards, and (iii) examine the theoretical basis of cooperation. Furthermore, we examine the moderating effects of locus of control and general trust that underscore employee expectations in the relationship between excessive extrinsic reward and cooperation.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Alfes, K., Shantz, A., & Truss, C. (2012). The link between perceived HRM practices, performance and well-being: The moderating effect of trust in the employer. Human Resource Management Journal, 22(4), 409–427. https://doi.org/10.1111/1748-8583.12005.
Arnold, H. (1985). Task performance, perceived competence, and attributed causes of performance as determinants of intrinsic motivation. Academy of Management Journal, 28(4), 876. https://doi.org/10.2307/256242.
Axelrod, R. M. (1984). The evolution of cooperation. Basic Books.
Balliet, D., Mulder, L. B., & Van Lange, P. A. M. (2011). Reward, punishment, and cooperation: A meta-analysis. Psychological Bulletin, 137(4), 594–615. https://doi.org/10.1037/a0023489.
Balliet, D., & Van Lange, P. A. M. (2013). Trust, conflict, and cooperation: A meta-analysis. Psychological Bulletin, 139(5), 1090–1112.
Barlett, J., Kotrlik, J., & Higgins, C. (2001). Organizational research: Determining appropriate sample size in survey research. Information Technology, Learning, and Performance Journal, 19(1), 43–50.
Baron, R. M., & Ganz, R. L. (1972). Effects of locus of control and type of feedback on the task performance of lower-class black children. Journal of Personality and Social Psychology, 21(1), 124. https://doi.org/10.1037/h0032099.
Belmi, P., & Pfeffer, J. (2015). How “organization” can weaken the norm of reciprocity: The effects of attributions for favors and a calculative mindset. Academy of Management Discoveries, 1(1), 36–57.
Birtch, T. A., Chiang, F. F. T., & Van Esch, E. (2016). A social exchange theory framework for understanding the job characteristics-job outcomes relationship: The mediating role of psychological contract fulfillment. International Journal of Human Resource Management, 27(11), 1217. https://doi.org/10.1080/09585192.2015.1069752.
Bonner, S. E., & Sprinkle, G. B. (2002). The effects of monetary incentives on effort and task performance: Theories, evidence, and a framework for research. Accounting, Organizations and Society, 27(4–5), 303–345.
Bonoma, T. V., & Johnston, W. J. (1979). Locus of control, trust, and decision making. Decision Sciences, 10(1), 39–56. https://doi.org/10.1111/j.1540-5915.1979.tb00005.x.
Brief, A. P., & Motowidlo, S. J. (1986). Prosocial organizational behaviors. Academy of Management Review, 11(4), 710–725.
Calder, B. J., & Staw, B. M. (1975). Self-perception of intrinsic and extrinsic motivation. Journal of Personality and Social Psychology, 31(4), 599. https://doi.org/10.1037/h0077100.
Cameron, J., & Pierce, W. D. (1994). Reinforcement, reward, and intrinsic motivation: A meta-analysis. Review of Educational Research, 64(3), 363–423. https://doi.org/10.3102/00346543064003363.
Cerasoli, C. P., Nicklin, J. M., & Ford, M. T. (2014). Intrinsic motivation and extrinsic incentives jointly predict performance: A 40-year meta-analysis. Psychological Bulletin, 140(4), 980–1008. https://doi.org/10.1037/a0035661.
Coyle-Shapiro, J. A. M., & Conway, N. (2005). Exchange relationships: Examining psychological contracts and perceived organizational support. Journal of Applied Psychology, 90(4), 774. https://doi.org/10.1037/0021-9010.90.4.774.
Coyle-Shapiro, J. A. M., Pereira Costa, S., Doden, W., & Chang, C. (2019). Psychological contracts: Past, present, and future. Annual Review of Organizational Psychology and Organizational Behavior, 6, 145–169.
Cropanzano, R., Anthony, E. L., Daniels, S. R., & Hall, A. V. (2017). Social exchange theory: A critical review with theoretical remedies. Academy of Management Annals, 11(1), 479–516. https://doi.org/10.5465/annals.2015.0099.
Deci, E. L., Koestner, R., & Ryan, R. M. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125, 627–668.
Deci, E. L., Olafsen, A. H., & Ryan, R. M. (2017). Self-determination theory in work organizations: The state of a science. Annual Review of Organizational Psychology and Organizational Behavior, 4, 19–43. https://doi.org/10.1146/annurev-orgpsych-032516-113108.
Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behavior (E. Aronson & SpringerLink Eds.). Springer US: Imprint: Springer.
Deckop, J. R., Mangel, R., & Cirka, C. C. (1999). Getting more than you pay for: Organizational citizenship behavior and pay-for-performance plans. Academy of Management Journal, 42(4), 420–428. https://doi.org/10.2307/257012.
Deutsch, M. (1949). A theory of co-operation and competition. Human Relations, 2(2), 129–152. https://doi.org/10.1177/001872674900200204.
Earn, B. M. (1982). Intrinsic motivation as a function of extrinsic financial rewards and subjects’ locus of control. Journal of Personality, 50(3), 360–373. https://doi.org/10.1111/j.1467-6494.1982.tb00756.x.
Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D., & Rhoades, L. (2001). Reciprocation of perceived organizational support. Journal of Applied Psychology, 86(1), 42. https://doi.org/10.1037//0021-9010.86.1.42.
Eisenberger, R., & Cameron, J. (1996). Detrimental effects of reward—Reality or myth? American Psychologist, 51, 1153–1166. https://doi.org/10.1037//0003-066X.51.11.1153.
Eisenberger, R., Rhoades, L., & Cameron, J. (1999). Does pay for performance increase or decrease perceived self-determination and intrinsic motivation? Journal of Personality and Social Psychology, 77(5), 1026–1040. https://doi.org/10.1037//0022-3514.77.5.1026.
Evans, A. M., & Revelle, W. (2008). Survey and behavioral measurements of interpersonal trust. Journal of Research in Personality, 42(6), 1585. https://doi.org/10.1016/j.jrp.2008.07.011.
Falk, A., & Fischbacher, U. (2006). A theory of reciprocity. Games and Economic Behavior, 54(2), 293. https://doi.org/10.1016/j.geb.2005.03.001.
Ferrin, D. L., & Dirks, K. T. (2003). The use of rewards to increase and decrease trust: Mediating processes and differential effects. Organization Science, 14(1), 18–31. https://doi.org/10.1287/orsc.14.1.18.12809.
Garbers, Y., & Konradt, U. (2014). The effect of financial incentives on performance: A quantitative review of individual and team-based financial incentives. Journal of Occupational and Organizational Psychology, 87(1), 102–137. https://doi.org/10.1111/joop.12039.
Gerhart, B., & Fang, M. (2014). Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects. Human Resource Management Review, 24(1), 41–52. https://doi.org/10.1016/j.hrmr.2013.08.010.
Gneezy, U., Meier, S., & Rey-Biel, P. (2011). When and why incentives (don’t) work to modify behavior. Journal of Economic Perspectives, 25(4), 191–210. https://doi.org/10.1257/jep.25.4.191.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis (W. C. Black, B. J. Babin, R. E. Anderson, & Ebscohost Eds. Seventh edition, Pearson new international edition. ed.). Pearson Education Limited.
Hendijani, R., Bischak, D. P., Arvai, J., & Dugar, S. (2016). Intrinsic motivation, external reward, and their effect on overall motivation and performance. Human Performance, 1–24. https://doi.org/10.1080/08959285.2016.1157595.
Heywood, J. S., Jirjahn, U., & Struewing, C. (2017). Locus of control and performance appraisal. Journal of Economic Behavior & Organization.
Hirst, M. K. (1983). Reliance on accounting performance measures, task uncertainty, and dysfunctional behavior: Some extensions. Journal of Accounting Research, 21(2), 596–605. https://doi.org/10.2307/2490793.
Ho, V. T., Weingart, L. R., & Rousseau, D. M. (2004). Responses to broken promises: Does personality matter? Journal of Vocational Behavior, 65(2), 276–293. https://doi.org/10.1016/j.jvb.2003.08.001.
Innocenti, L., Pilati, M., & Peluso, A. M. (2011). Trust as moderator in the relationship between HRM practices and employee attitudes. Human Resource Management Journal, 21(3), 303. https://doi.org/10.1111/j.1748-8583.2010.00151.x.
Inzlicht, M., Shenhav, A., & Olivola, C. Y. (2018). The effort paradox: Effort is both costly and valued. Trends in cognitive sciences, 22(4), 337–349.
Johnson, R., Rosen, C., Chang, C., & Lin, S. (2015). Getting to the core of locus of control: Is it an evaluation of the self or the environment? Journal of Applied Psychology, 100(5), 1568–1578. https://doi.org/10.1037/apl0000011.
Jolliffe, I. (2011). Principal component analysis. In International encyclopedia of statistical science (pp. 1094–1096): Springer.
Karagonlar, G., Eisenberger, R., & Aselage, J. (2016). Reciprocation wary employees discount psychological contract fulfillment. Journal of Organizational Behavior, 37(1), 23–40. https://doi.org/10.1002/job.2016.
Korsgaard, M. A., Schweiger, D. M., & Sapienza, H. J. (1995). Building commitment, attachment, and trust in strategic decision-making teams: The role of procedural justice. Academy of Management Journal, 38(1), 60–84.
Kramer, R. M. (1999). Trust and distrust in organizations: Emerging perspectives, enduring questions. Annual Review of Psychology, 569.
Kren, L. (1992). The moderating effects of locus of control on performance incentives and participation. Human Relations, 45(9), 991.
Lazear, E. P. (2018). Compensation and incentives in the workplace. Journal of Economic Perspectives, 32(3), 195–214. https://doi.org/10.1257/jep.32.3.195.
Lefcourt, H. M. (2014). Locus of control: Current trends in theory & research. Psychology Press.
Lepper, M. R., & Greene, D. (2015). The hidden costs of reward: New perspectives on the psychology of human motivation: Psychology Press.
Lepper, M. R., Greene, D., & Nisbett, R. E. (1973). Undermining children’s intrinsic interest with extrinsic reward: A test of the “overjustification” hypothesis. Journal of Personality and Social Psychology.
Malhotra, N., Budhwar, P., & Prowse, P. (2007). Linking rewards to commitment: An empirical investigation of four UK call centers. International Journal of Human Resource Management, 18(12), 2095.
Malik, M. A. R., Butt, A. N., & Choi, J. N. (2015). Rewards and employee creative performance: Moderating effects of creative self-efficacy, reward importance, and locus of control. Journal of Organizational Behavior, 36(1), 59–74. https://doi.org/10.1002/job.1943.
Mead, M. (1937). Cooperation and competition among primitive peoples (M. Mead Ed.).
Meeker, B. F. (1984). Cooperative orientation, trust, and reciprocity. Human Relations, 37(3), 225–243.
Miles, J., & Shevlin, M. (2001). Applying regression & correlation: A guide for students and researchers (M. Shevlin Ed.). SAGE.
Mitchell, T., Smyser, C., & Weed, S. (1975). Locus of control—Supervision and work satisfaction. Academy of Management Journal, 18(3), 623.
Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38. https://doi.org/10.2307/1252308.
Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurement of organizational commitment. Journal of Vocational Behavior, 14(2), 224–247. https://doi.org/10.1016/0001-8791(79)90072-1.
Ng, T. W. H., & Butts, M. M. (2009). Effectiveness of organizational efforts to lower turnover intentions: The moderating role of employee locus of control. Human Resource Management, 48(2), 289–310. https://doi.org/10.1002/hrm.20280.
Ng, T. W. H., Feldman, D., & Lam, S. (2010). Psychological contract breaches, organizational commitment, and innovation-related behaviors: A latent growth modeling approach. Journal of Applied Psychology, 95(4), 744. https://doi.org/10.1037/a0018804.
Ng, T. W. H., Soresen, K. L., & Eby, L. T. (2006). Locus of control at work: A meta-analysis. Journal of Organizational Behavior, 27(8), 1057.
Norman, W. T. (1963). Toward an adequate taxonomy of personality attributes: Replicated factors structure in peer nomination personality ratings. Journal of Abnormal and Social Psychology, 66, 574.
Ogbonnaya, C., Daniels, K., & Nielsen, K. (2017). Does contingent pay encourage positive employee attitudes and intensify work? Human Resource Management Journal, 27(1), 94–112. https://doi.org/10.1111/1748-8583.12130.
Pascual-Ezama, D., Prelec, D., & Dunfield, D. (2013). Motivation, money, prestige and cheats. Journal of Economic Behavior and Organization, 93(C), 367–373. https://doi.org/10.1016/j.jebo.2013.03.015.
Phillips, J., & Lord, R. (1980). Determinants of intrinsic motivation: Locus of control and competence information as components of Deci’s cognitive evaluation theory. Journal of Applied Psychology, 65(2), 211. https://doi.org/10.1037/0021-9010.65.2.211.
Raja, U., Johns, G., & Ntalianis, F. (2004). The impact of personality on psychological contracts. Academy of Management Journal, 47(3), 350–367.
Rand, D. G., & Nowak, M. A. (2013). Human cooperation. Trends in cognitive sciences, 17(8), 413. https://doi.org/10.1016/j.tics.2013.06.003.
Robinson, S. L. (1996). Trust and breach of the psychological contract. Administrative Science Quarterly, 41(4), 574–599. https://doi.org/10.2307/2393868.
Robinson, S. L., Kraatz, M. S., & Rousseau, D. M. (1994). Changing obligations and the psychological contract: A longitudinal study. Academy of Management Journal, 37(1), 137–152. https://doi.org/10.2307/256773.
Robinson, S. L., & Morrison, E. W. (2000). The development of psychological contract breach and violation: A longitudinal study. Journal of Organizational Behavior, 21(7), 529, 855–855.
Ross, A. (1994). Trust as a moderator of the effect of performance evaluation style on job-related tension: A research note. Accounting, Organizations and Society, 19(7), 629. https://doi.org/10.1016/0361-3682(94)90027-2.
Rotter, J. B. (1966). Generalized expectancies for internal versus external control of reinforcement. Psychological Monographs, 80(1), 1. https://doi.org/10.1037/h0092976.
Rotter, J. B. (1967). A new scale for the measurement of interpersonal trust. Journal of Personality, 35(4), 651–665. https://doi.org/10.1111/j.1467-6494.1967.tb01454.x.
Rousseau, D. M., Sitkin, S., Burt, R., & Camerer, C. (1998). Not so different after all: A cross-discipline view of trust. Academy of Management Review, 23(3), 393–404.
Ruokolainen, M., Mauno, S., Diehl, M.-R., Tolvanen, A., Mäkikangas, A., & Kinnunen, U. (2016). Patterns of psychological contract and their relationships to employee well-being and in-role performance at work: Longitudinal evidence from university employees. International Journal of Human Resource Management, 1–24. https://doi.org/10.1080/09585192.2016.1166387.
Shaw, J. D., Duffy, M. K., & Stark, E. M. (2001). Team reward attitude: Construct development and initial validation. Journal of Organizational Behavior, 22(8), 903–917. https://doi.org/10.1002/job.121.
Sliwka, D., & Werner, P. (2017). Wage increases and the dynamics of reciprocity. Journal of Labor Economics, 35(2), 299–344. https://doi.org/10.1086/689189.
Spector, P. E. (1982). Behavior in organizations as a function of employee’s locus of control. Psychological Bulletin, 91(3), 482–497. https://doi.org/10.1037/0033-2909.91.3.482.
Spector, P. E. (1988, December). Development of the work locus of control scale. Journal of Occupational Psychology, 61(88), 335–340.
Spector, P. E., Cooper, C. L., Sanchez, J. I., O’Driscoll, M., Sparks, K., Bernin, P., et al. (2002). Locus of control and well-being at work: How generalizable are western findings? Academy of Management Journal, 45(2), 453–466. https://doi.org/10.2307/3069359.
Takahashi, H., Shen, J., & Ogawa, K. (2016). An experimental examination of compensation schemes and level of effort in differentiated tasks. Journal of Behavioral and Experimental Economics, 61, 12–19.
Tang, S. H., & Hall, V. C. (1995). The overjustification effect: A meta-analysis. Applied Cognitive Psychology, 9(5), 365–404. https://doi.org/10.1002/acp.2350090502.
Taub, S. I., & Dollinger, S. J. (1975). Reward and purpose as incentives for children differing in locus of control expectancies 1. Journal of Personality, 43(2), 179–195. https://doi.org/10.1111/j.1467-6494.1975.tb00701.x.
Tjosvold, D., & Tsao, Y. (1989). Productive organizational collaboration: The role of values and cooperation. Journal of Organizational Behavior, 189–195.
Vandenberg, R. J., Richardson, H. A., & Eastman, L. J. (1999). The impact of high involvement work processes on organizational effectiveness. Group and Organization Management, 24(3), 300–339. https://doi.org/10.1177/1059601199243004.
Wagner, J. A., III. (1995). Studies of individualism-collectivism: Effects on cooperation in groups. Academy of Management Journal, 38(1), 152–173.
Wilt, J., & Revelle, W. (2017). The Big Five, everyday contexts and activities, and affective experience. Personality and Individual Differences. https://doi.org/10.1016/j.paid.2017.12.032.
Yamagishi, T., Akutsu, S., Cho, K., Inoue, Y., Li, Y., & Matsumoto, Y. (2015). Two-Component model of general trust: Predicting behavioral trust from attitudinal trust. Social Cognition, 33(5), 436–458. https://doi.org/10.1521/soco.2015.33.5.436.
Yamagishi, T., Kanazawa, S., Mashima, R., & Terai, S. (2005). Separating trust from cooperation in a dynamic relationship. Rationality and Society, 17(3), 275–308. https://doi.org/10.1177/1043463105055463.
Yamagishi, T., & Yamagishi, M. (1994). Trust and commitment in the United States and Japan. Motivation and emotion, 18(2), 129–166.
Young, G. J., Beckman, H., & Baker, E. (2012). Financial incentives, professional values and performance: A study of pay-for-performance in a professional organization. Journal of Organizational Behavior, 33(7), 964–983.
Yu, J., & Cooper, H. (1983). A quantitative review of research design effects on response rates to questionnaires. Journal of Marketing Research, 20(1), 36. https://doi.org/10.2307/3151410.
Zak, P. J. (2017). The neuroscience of trust. Harvard Business Review, 95(1), 84–90.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Kwok, A.O.J., Watabe, M., Ahmed, P.K. (2021). Workplace Cooperation: Why Individual Differences Matter. In: Augmenting Employee Trust and Cooperation. Springer, Singapore. https://doi.org/10.1007/978-981-16-2343-1_5
Download citation
DOI: https://doi.org/10.1007/978-981-16-2343-1_5
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-16-2342-4
Online ISBN: 978-981-16-2343-1
eBook Packages: Business and ManagementBusiness and Management (R0)