Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/35845 
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers No. 4795
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
We investigate how bonus payments affect satisfaction and performance of managers in a large, multinational company. We find that falling behind a naturally occurring reference point for bonus comparisons reduces satisfaction and subsequent performance. The effects tend to be mitigated if information about one's relative standing towards the reference point is withheld.
Subjects: 
Reference points
incentives
bonus payments
job satisfaction
job performance
JEL: 
D03
M52
Document Type: 
Working Paper

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