Generous Rewards Rouse One to Heroism? R&D Employees' Work Value and the Suppressing Effect of Incentive Dissonance on Creative Performance

Abstract

Abstract:

Hierarchical incentive structure contributes to the organization development. However, whether it meets the need of employee's intrinsic work value has not been finalized. From the perspectives of neuroeconomics and evolutionary psychology, this paper systematically studies work-reward value perception of the R&D employee and their fitness, and the fitness effects on creativity. The results show that the work value positively impacts employees' creativity and the effect decreases as the work value increases. Wilcoxon test shows that incentive system of the organizations falls obviously behind the needs of R&D employees' intrinsic work value. Furthermore polynomial regression and response surface analysis shows that when the incentive system matches employees' work value, creativity will be enhanced significantly; otherwise, it will be suppressed. This paper extends motivational synergy theory by providing a fit framework for understanding how the extrinsic reward may interact with intrinsic psychological needs to affect R&D employees' creativity. This paper also discusses managerial implications for improving the incentive system of business.

Key words: work values, reward value, hierarchical incentive structure, incentive dissonance, creativity

Ma Jun, Liu Ting . Generous Rewards Rouse One to Heroism? R&D Employees' Work Value and the Suppressing Effect of Incentive Dissonance on Creative Performance[J]. , 2015, 27(7): 94-104.

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