The impact of financial and nonfinancial incentives on business-unit outcomes over time

Suzanne Peterson, Fred Luthans

Research output: Contribution to journalArticle

98 Citations (Scopus)

Abstract

Unlike previous behavior management research, this study used a quasi-experimental, control group design to examine the impact of financial and nonfinancial incentives on business-unit (21 stores in a fast-food franchise corporation) outcomes (profit, customer service, and employee turnover) over time. The results showed that both types of incentives had a significant impact on all measured outcomes. The financial incentive initially had a greater effect on all 3 outcomes, but over time, the financial and nonfinancial incentives had an equally significant impact except in terms of employee turnover.

Original languageEnglish (US)
Pages (from-to)156-165
Number of pages10
JournalJournal of Applied Psychology
Volume91
Issue number1
DOIs
StatePublished - Jan 2006

Fingerprint

Motivation
Personnel Turnover
Fast Foods
Control Groups
Research

Keywords

  • Business unit outcomes
  • Fast food industry
  • Financial incentives
  • Nonfinancial incentives
  • Performance management

ASJC Scopus subject areas

  • Applied Psychology

Cite this

The impact of financial and nonfinancial incentives on business-unit outcomes over time. / Peterson, Suzanne; Luthans, Fred.

In: Journal of Applied Psychology, Vol. 91, No. 1, 01.2006, p. 156-165.

Research output: Contribution to journalArticle

@article{ca272e257da647118e5aed927748997f,
title = "The impact of financial and nonfinancial incentives on business-unit outcomes over time",
abstract = "Unlike previous behavior management research, this study used a quasi-experimental, control group design to examine the impact of financial and nonfinancial incentives on business-unit (21 stores in a fast-food franchise corporation) outcomes (profit, customer service, and employee turnover) over time. The results showed that both types of incentives had a significant impact on all measured outcomes. The financial incentive initially had a greater effect on all 3 outcomes, but over time, the financial and nonfinancial incentives had an equally significant impact except in terms of employee turnover.",
keywords = "Business unit outcomes, Fast food industry, Financial incentives, Nonfinancial incentives, Performance management",
author = "Suzanne Peterson and Fred Luthans",
year = "2006",
month = "1",
doi = "10.1037/0021-9010.91.1.156",
language = "English (US)",
volume = "91",
pages = "156--165",
journal = "Journal of Applied Psychology",
issn = "0021-9010",
publisher = "American Psychological Association Inc.",
number = "1",

}

TY - JOUR

T1 - The impact of financial and nonfinancial incentives on business-unit outcomes over time

AU - Peterson, Suzanne

AU - Luthans, Fred

PY - 2006/1

Y1 - 2006/1

N2 - Unlike previous behavior management research, this study used a quasi-experimental, control group design to examine the impact of financial and nonfinancial incentives on business-unit (21 stores in a fast-food franchise corporation) outcomes (profit, customer service, and employee turnover) over time. The results showed that both types of incentives had a significant impact on all measured outcomes. The financial incentive initially had a greater effect on all 3 outcomes, but over time, the financial and nonfinancial incentives had an equally significant impact except in terms of employee turnover.

AB - Unlike previous behavior management research, this study used a quasi-experimental, control group design to examine the impact of financial and nonfinancial incentives on business-unit (21 stores in a fast-food franchise corporation) outcomes (profit, customer service, and employee turnover) over time. The results showed that both types of incentives had a significant impact on all measured outcomes. The financial incentive initially had a greater effect on all 3 outcomes, but over time, the financial and nonfinancial incentives had an equally significant impact except in terms of employee turnover.

KW - Business unit outcomes

KW - Fast food industry

KW - Financial incentives

KW - Nonfinancial incentives

KW - Performance management

UR - http://www.scopus.com/inward/record.url?scp=31344453958&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=31344453958&partnerID=8YFLogxK

U2 - 10.1037/0021-9010.91.1.156

DO - 10.1037/0021-9010.91.1.156

M3 - Article

C2 - 16435945

AN - SCOPUS:31344453958

VL - 91

SP - 156

EP - 165

JO - Journal of Applied Psychology

JF - Journal of Applied Psychology

SN - 0021-9010

IS - 1

ER -