Effort or timing
Subtitle: the effect of lump-sum bonuses
By: Thomas J. Steenburgh
Contributors: Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 05-051; Working paper (Harvard Business School. Division of Research) -- 05-051
Publisher: Division of Research, Harvard Business School
Published: 2005
Place of publication: Boston
Language: eng
Number of pages: 44
Description: This article addresses the question of whether lump-sum bonuses motivate salespeople to work harder to attain incremental orders or whether they induce salespeople to play timing games (behaviors that increase incentive payments without providing incremental benefits to the firm) with their order submissions. We find that lump-sum bonuses primarily motivate salespeople to work harder, a result that is consistent with the widespread use of bonuses in practice, but that contradicts earlier empirical work in academics.
Notes: Includes bibliographical references.