Publications
Publications
- 2004
- HBS Working Paper Series
Effort or Timing: The Effect of Lump-Sum Bonuses
Abstract
This article addresses the question of whether lump-sum bonuses motivate salespeople to work harder to attain incremental orders or whether they induce salespeople to play timing games (behaviors that increase incentive payments without providing incremental benefits to the firm) with their order submissions. We find that lump-sum bonuses primarily motivate salespeople to work harder, a result that is consistent with the widespread use of bonuses in practice, but that contradicts earlier empirical work in academics.
Keywords
Citation
Steenburgh, Thomas J. "Effort or Timing: The Effect of Lump-Sum Bonuses." Harvard Business School Working Paper, No. 05-051, December 2004.