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Group Goal Difficulty and Shirking: The Moderating Role of Group Identity

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50
Author
Chaoping Li Andrea Drake
Category
Quantitative
Date Posted
2022/04/29
Date Retrieved
2022/05/19
Date Revised
2022/05/10
Date Written
2022/05/10
Description
Goal-setting is a common practice to motivate effort. However little is known about the effectiveness of group goal difficulty on shirking depends on team dynamics such as group identity. We study the question under a mixed incentives setting where a combination of a tournament incentive and a group-based pay is offered as such an incentive setting is widely used in practice. Using a real-effort experiment we predict and find that group goal difficulty has a negative effect on shirking when group identity is strong but has a positive effect when group identity is weak. That is in strongly identified groups increasing group goal difficulty motivates shirking. Yet in weakly identified groups increasing group goal difficulty reduces shirking. The reason is that when group identity is weak group members focus on individual interests and compete for a larger tournament incentive. When group identity is strong group members focus on the groups common good. Failing to reach group goals weaken
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JEL Classifications
C92 D23 M40 M50
Keywords
Shirking Task Difficulty Group Identity Mixed Incentives
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Pages
29
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URL
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4105572
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