New research in neuroeconomics suggests that money may be a more powerful motivator than previously thought, with important implications for incentive pay programs.
Minceli, M.P. , & Heneman, R.L. (2000). Contextual determinants of variable pay plan design: A proposed research framework. Human Resource Management Review, 10(3), 289-305.
3.
Lea, S.E.G. , & Webley, P. (2006). Money as a tool, money as drug: The biological psychology of a strong incentive. Behavioral and Brain Sciences, 29, 161-209.
4.
See Pfeffer & Sutton (2006); Beer, M., & Cannon, M. D. (2004). Promise and peril in implementing pay-for-performance. Human Resources Management, 43(1), 3-35.
5.
McCarthy, A. , & Garavan, T.N. (2007). Understanding acceptance of multisource feedback for management development. Personnel Review, 36(6), 903-917.
6.
Pfeffer & Sutton (2006).
7.
Beer & Cannon (2004).
8.
Rynes, S.L., Gerhart, B., & Parks, L. ( 2005). Personnel psychology: Performance evaluation and pay for performance. Annual Review of Psychology, 56, 571-600.
9.
Hannon, K. (2007). Review: Greed feels good, so watch out. Retrieved July 3, 2009 from www.usatoday.com/money/books/2007-09-09-your-money-your-brain_n.htm. For details of this research, see Dubner, S. J. (2009). This is your brain on prosperity: Andrew Lo on fear, greed and crisis management. Retrieved July 2, 2009 from http://freakonomics.blogs. nytimes.com/2009/01/09/this-is-you-brain-on-prosperity-andrew-lo-on-fear-greed-and-crisis-management/. Henschel, H. (2005). Beyond behavioural finance-The neuroscience of investment behaviour. Retrieved July 3, 2009 from http://www.cfa.ac.za/Neuroscience _SA.pdf. Lea & Webley (2006); Lo, A. W., Dmitry, V. R., & Steenbarger, B. N. (2005). Fear and greed in financial markets: A clinical study of day-traders. Cognitive Neuroscientific Foundations of Behavior, 95(2), 354-359; Milner, B. (2009). This is your brain. This is your brain on money. Retrieved March 10, 2009, from www.reportonbusiness.com.
10.
Davis, J.L. , Payne, G.T., & McMahan , G.C. (2007). A few bad apples? Scandalous behaviour of mutual fund managers. Journal of Business Ethics, 76, 319-334; Rynes et al. (2005). 11. Ibid.
11.
Hamblin, R. (2008). Regulation, measurement and incentives. The experience in the U.S. and U.K.: Does context matter?Journal of the Royal Society for the Promotion of Health , 128(6), 291-298.
12.
Rynes et al. (2005).
13.
Lea & Webley (2006).
14.
Kirschbaum, E. (2009, January 11). Shame not financial loss, prompts very rich to commit suicide. Gazette (Montreal), p. A7.
