The Effects of Individual Monetary Incentives With and Without Feedback

Abstract

This study examined the effects of an individual monetary incentive system with and without feedback to determine if feedback would supplement the effects of incentives. Participants were seven college students who performed a computerized task called SYNWORK. SYNWORK presented four sub-tasks concurrently: memory, arithmetic, visual monitoring and auditory monitoring. Participants earned points for correct responses. The dependent variable was the number of points earned. An ABAC design was used with A = individual monetary incentives without feedback, B = individual monetary incentives with feedback, and C = hourly pay with feedback. Sessions were 90 minutes, and there were 5 to 10 sessions per phase. The point scores of six of the seven participants increased when feedback was added to the incentive system but stabilized or continued to increase when feedback was removed. The feedback intervention was staggered in time across participants, and performance increased when feedback was added, hence the data suggest that feedback enhanced the effects of the incentives. One possible reason for the reversal failure is that feedback evoked higher levels of performance that were then maintained by the additional incentives. Because performance did not reverse, however, the results must be viewed cautiously.

Key Words:

• Incentives
• hourly pay
• feedback
• laboratory
• organizational behavior management