Joint Meeting of the Mid-Atlantic and Northeast Regions

Group Identity and Voluntary Effort

• In Event: Dialogue 2: Behavioral and Organization

Abstract

This study investigates how group-based incentive contracts affect the development of employees’ group identity. We argue that employees develop a stronger group identity when working together on a group task under a group budget-based contract than under a group piece-rate contract. We further argue a carryover benefit of this established group identity into a group’s next task. Specifically, the existing group identity can carry over to a subsequent group task that is no longer governed by a group-based incentive contract, and, more importantly, the success of the task largely depends on group members’ voluntary efforts. This carryover effect, however, may diminish when employees have to work under an overly-detailed contract in that subsequent task. Simply put, an overly-detailed contract can harm group identity that is necessary for facilitating the employees’ voluntary efforts. A more general contract, in contrast, can maintain the existing group identity and motivate employees to contribute their efforts voluntarily.

Authors

• Nicholas J Fessler, Western Kentucky University

• Chaoping Li, Skidmore College

• Pinky Rusli, Western Kentucky University