A Comparison of the Effects of Two Individual Monetary Incentive Systems on Work Productivity: Piece-Work Pay Versus Base Pay Plus Incentives
Date of Award
Master of Arts
Dr. Alyce M. Dickinson
Dr. William K. Redmor
Dr. Jack Michael
Masters Thesis-Open Access
This study compared the effectiveness of a piece-rate pay system in which 100% of the subject's pay was incentive-based with a base pay plus incentive system in which approximately 30% of the subject's pay was incentive-based. Two experiments were conducted. In each experiment, six subjects were exposed to both pay systems using a within-subject reversal design. Subjects participated in 6 to 9 three-hour sessions (Experiment 1) or 9 to 14 four-hour sessions (Experiment 2). Simulated bank checks with differing cash values were presented on a computer screen, and subjects entered the cash values using the computer keyboard. The dependent variable was the number of correctly entered checks. No systematic relationship emerged between productivity and the two pay systems. Neither the total amount of money earned nor the amount of the per piece incentives appeared to affect performance.
Gillette, Kirk L., "A Comparison of the Effects of Two Individual Monetary Incentive Systems on Work Productivity: Piece-Work Pay Versus Base Pay Plus Incentives" (1991). Masters Theses. 965.