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  • All HBS Web  (4,755)
    • People  (10)
    • News  (821)
    • Research  (3,338)
    • Events  (34)
    • Multimedia  (28)
  • Faculty Publications  (2,030)
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  • March 2022
  • Module Note

A Behavioral Science Perspective on Motivation and Incentives

By: John Beshears and Ashley Whillans
This module note for instructors describes a module that integrates insights from the behavioral science of motivation into the economic analysis of incentive systems. View Details
Keywords: Motivation; Incentives; Behavioral Science; Behavioral Economics; Motivation and Incentives; Economics; Analysis; Human Resources
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Beshears, John, and Ashley Whillans. "A Behavioral Science Perspective on Motivation and Incentives." Harvard Business School Module Note 922-033, March 2022.
  • Article

Forgoing Earned Incentives to Signal Pure Motives

By: Erika L. Kirgios, Edward H. Chang, Emma E. Levine, Katherine L. Milkman and Judd B. Kessler
Policy makers, employers, and insurers often provide financial incentives to encourage citizens, employees, and customers to take actions that are good for them or for society (e.g., energy conservation, healthy living, safe driving). Although financial incentives are... View Details
Keywords: Incentives; Motivation Laundering; Self-signaling; Motivation and Incentives; Behavior; Perception
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Kirgios, Erika L., Edward H. Chang, Emma E. Levine, Katherine L. Milkman, and Judd B. Kessler. "Forgoing Earned Incentives to Signal Pure Motives." Proceedings of the National Academy of Sciences 117, no. 29 (July 21, 2020): 16891–16897.
  • Research Summary

Motivation and Incentive Design

Professor Ashraf's research in motivation and incentives focuses on how to design incentives in sectors where it is important that individuals are motivated by service, such as healthcare or environmental conservation. An important lever is the... View Details

  • 09 May 2023
  • HBS Conference

Motivation and Incentives Conference

  • March 2021
  • Article

Opting-in to Prosocial Incentives

By: Daniel Schwartz, Elizabeth A. Keenan, Alex Imas and Ayelet Gneezy
The design of effective incentive schemes that are both successful in motivating employees and keeping down costs is of critical importance. Research has demonstrated that prosocial incentives, where individuals’ effort benefits a charitable organization, can sometimes... View Details
Keywords: Incentives; Prosocial Behavior; Behavioral Economics; Field Experiments; Recycling; Prosocial Motivation; Decision Making; Motivation and Incentives; Behavior
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Schwartz, Daniel, Elizabeth A. Keenan, Alex Imas, and Ayelet Gneezy. "Opting-in to Prosocial Incentives." Organizational Behavior and Human Decision Processes 163 (March 2021): 132–141.

    Motivating Diverse Salespeople Through a Common Incentive Plan

    For practical reasons, many companies offer a common incentive plan to an entire sales force rather than offering customised plans for each individual. Doug J. Chung, Thomas Steenburgh, and K. Sudhir address how companies can design a single plan that motivates... View Details
    • April 2008
    • Case

    Engstrom Auto Mirror Plant: Motivating in Good Times and Bad

    By: Michael Beer and Elizabeth Collins
    In May 2007, the Engstrom Auto Mirrors plant, a relatively small supplier based in Indiana, faces a crisis. The business was in the second year of a downturn. Sales had started to decline in 2005; a year later, plant manager Ron Bent had been forced to lay off more... View Details
    Keywords: Organizational Behavior; Human Resource Management; Incentives; Motivation; Manufacturing; Leadership; Change Management; Employees; Motivation and Incentives; Goals and Objectives; Manufacturing Industry; Indiana
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    Beer, Michael, and Elizabeth Collins. "Engstrom Auto Mirror Plant: Motivating in Good Times and Bad." Harvard Business School Brief Case 082-175, April 2008.
    • December 2014
    • Article

    No Margin, No Mission? A Field Experiment on Incentives for Public Services Delivery

    By: Nava Ashraf, Oriana Bandiera and B. Kelsey Jack
    A substantial body of research investigates the effect of pay for performance in firms, yet less is known about the effect of non-financial rewards, especially in organizations that hire individuals to perform tasks with positive social spillovers. We conduct a field... View Details
    Keywords: Incentives; Non-monetary Rewards; Intrinsic Motivation; Motivation and Incentives; Employees; Service Industry; Health Industry
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    Ashraf, Nava, Oriana Bandiera, and B. Kelsey Jack. "No Margin, No Mission? A Field Experiment on Incentives for Public Services Delivery." Journal of Public Economics 120 (December 2014): 1–17.
    • June 2017 (Revised May 2019)
    • Supplement

    Kjell and Company: Motivating Salespeople with Incentive Compensation (B)

    By: Doug J. Chung
    Kjell & Company was a Swedish retail electronics chain founded in 1988 by brothers Marcus, Mikael and Fredrik Dahnelius. The company operated 84 stores, all company-owned, located mainly in the metropolitan areas of Sweden’s most popular cities: Stockholm, Gothemburg... View Details
    Keywords: Salesforce Management; Compensation and Benefits; Motivation and Incentives; Change Management; Behavior; Electronics Industry; Sweden
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    Chung, Doug J. "Kjell and Company: Motivating Salespeople with Incentive Compensation (B)." Harvard Business School Supplement 517-133, June 2017. (Revised May 2019.)
    • May 2019
    • Supplement

    Kjell and Company: Motivating Salespeople with Incentive Compensation (D)

    By: Doug J. Chung
    Kjell & Company was a Swedish retail electronics chain. The company’s products consisted of home electronics and accessories. The company was noted for its excellent customer service and a fair “one-for-all” HR policy. Historically, the salespeople had been compensated... View Details
    Keywords: Salesforce Management; Compensation and Benefits; Motivation and Incentives; Change Management; Behavior; Electronics Industry; Sweden
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    Chung, Doug J. "Kjell and Company: Motivating Salespeople with Incentive Compensation (D)." Harvard Business School Supplement 519-096, May 2019.
    • 2014
    • Other Unpublished Work

    No Margin, No Mission? A Field Experiment on Incentives for Public Services Delivery

    By: Nava Ashraf, Oriana Bandiera and Kelsey Jack
    A substantial body of research investigates the effect of pay for performance in firms, yet less is known about the effect of non-financial rewards, especially in organizations that hire individuals to perform tasks with positive social spillovers. We conduct a field... View Details
    Keywords: Incentives; Non-monetary Rewards; Intrinsic Motivation; Mission and Purpose; Social Enterprise; Motivation and Incentives
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    Ashraf, Nava, Oriana Bandiera, and Kelsey Jack. "No Margin, No Mission? A Field Experiment on Incentives for Public Services Delivery." (March 2014. Conditionally accepted, Journal of Public Economics.)
    • January 2017 (Revised May 2019)
    • Case

    Kjell and Company: Motivating Salespeople with Incentive Compensation (A)

    By: Doug J. Chung
    Kjell & Company was a Swedish retail electronics chain. The company’s products consisted of home electronics and accessories. The company was noted for its excellent customer service and a fair “one-for-all” HR policy. Historically, the salespeople had been compensated... View Details
    Keywords: Salesforce Management; Compensation and Benefits; Change; Decision Making; Electronics Industry; Sweden
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    Chung, Doug J. "Kjell and Company: Motivating Salespeople with Incentive Compensation (A)." Harvard Business School Case 517-090, January 2017. (Revised May 2019.)
    • May 2019
    • Supplement

    Kjell and Company: Motivating Salespeople with Incentive Compensation (C)

    By: Doug J. Chung
    Kjell & Company was a Swedish retail electronics chain. The company’s products consisted of home electronics and accessories. The company was noted for its excellent customer service and a fair “one-for-all” HR policy. Historically, the salespeople had been compensated... View Details
    Keywords: Salesforce Management; Compensation and Benefits; Change Management; Behavior; Electronics Industry; Sweden
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    Chung, Doug J. "Kjell and Company: Motivating Salespeople with Incentive Compensation (C)." Harvard Business School Supplement 519-095, May 2019.
    • May 2018
    • Article

    Incentives for Prosocial Behavior: The Role of Reputations

    By: Christine L. Exley
    Do monetary incentives encourage volunteering? Or, do they introduce concerns about appearing greedy and crowd out the motivation to volunteer? Since the importance of such image concerns is normally unobserved, the answer is theoretically unclear, and corresponding... View Details
    Keywords: Incentives; Image Motivation; Volunteer; Prosocial Behavior; Altruism; Gender; Reputations; Motivation and Incentives; Behavior; Perception; Reputation
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    Exley, Christine L. "Incentives for Prosocial Behavior: The Role of Reputations." Management Science 64, no. 5 (May 2018): 2460–2471.
    • November 2016 (Revised December 2016)
    • Module Note

    Strategy Execution Module 12: Aligning Performance Goals and Incentives

    By: Robert Simons
    This module reading explains how managers use performance goals and incentives to ensure that employee actions align with the overall business strategy of the organization. The module begins by discussing how managers use goals to communicate business strategy, the... View Details
    Keywords: Management Control Systems; Implementing Strategy; Execution; Performance Goals; Performance Measures; Incentives; Benchmarks; Motivation; Compensation; Bonuses; Strategy
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    Simons, Robert. "Strategy Execution Module 12: Aligning Performance Goals and Incentives." Harvard Business School Module Note 117-112, November 2016. (Revised December 2016.)
    • Research Summary

    Monetary and Non-monetary Incentives

    By: Susanna Gallani
    In this line of research, Prof. Gallani explores the interplay between monetary and non-monetary incentives in organization. In particular, she explores the effectiveness of non-monetary motivation mechanisms, including mission statements and company values, feedback,... View Details
    Keywords: Non-monetary Rewards; Rewards And Penalties; Feedback; Span Of Support; Social Pressure
    • April 2008
    • Teaching Note

    Engstrom Auto Mirror Plant: Motivating in Good Times and Bad (Brief Case)

    By: Michael Beer and Elizabeth Collins
    Teaching note for case # 2175 View Details
    Keywords: Organizational Behavior; Human Resource Management; Incentives; Motivation; Manufacturing; Motivation and Incentives; Leadership; Change Management; Production; Organizations; Human Resources; Manufacturing Industry
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    Beer, Michael, and Elizabeth Collins. "Engstrom Auto Mirror Plant: Motivating in Good Times and Bad (Brief Case)." Harvard Business School Teaching Note 082-176, April 2008.
    • Article

    How to Really Motivate Salespeople

    By: Doug J. Chung
    Much of what we believe about the best ways to compensate and motivate the sales force is based on theory and lab experiments. But in the past decade, researchers have been moving out of the lab and into the field, analyzing companies' sales and pay data, and... View Details
    Keywords: Compensation; Motivating People; Motivation and Incentives; Compensation and Benefits; Sales
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    Chung, Doug J. "How to Really Motivate Salespeople." Harvard Business Review 93, no. 4 (April 2015): 54–61.
    • September 2017
    • Article

    Winning the War for Talent: Modern Motivational Methods for Attracting and Retaining Employees

    By: Anais Thibault-Landry, Allan Schweyer and Ashley V. Whillans
    Given the struggle that many organizations face hiring and retaining talent in today's tight labor market, it is critical to understand how to effectively reward employees. To address this question, we review relevant evidence that explains the importance of workplace... View Details
    Keywords: Rewards; Total Reward Strategies; Incentives; Recognition; Motivation; Psychological Needs; Employees; Retention; Motivation and Incentives; Working Conditions
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    Thibault-Landry, Anais, Allan Schweyer, and Ashley V. Whillans. "Winning the War for Talent: Modern Motivational Methods for Attracting and Retaining Employees." Compensation & Benefits Review 49, no. 4 (September 2017): 230–246.
    • October–November 2013
    • Article

    Motivating Diverse Salespeople Through a Common Incentive Plan

    By: Doug J. Chung, Tom Steenburgh and K. Sudhir
    Citation
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    Chung, Doug J., Tom Steenburgh, and K. Sudhir. "Motivating Diverse Salespeople Through a Common Incentive Plan." European Financial Review (October–November 2013), 45–47. (Lead article.)
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