A laboratory study was designed to examine the impact of methods of payment (piece-rate vs. hourly flat-rate), choice of self-set goals (hard, easy, and free-choice), and self-esteem on the choice of goal difficulty. A significant (p = .01) two-way interaction between task-specific self-esteem and methods of payment was found to influence the choice of goal difficulty. High task-specific self-esteem subjects-as opposed to low task-specific self-esteem subjects-set significantly harder goals under the piece-rate plans than under the hourly flat-rate plans. In addition, a significant (p = .003) two-way interaction between choice of self-set goals and task-specific self-esteem was found to influence perceived total valences of job performance. Perceived total valences of job performance mediates the effects of task-specific self-esteem and choice of self-set goals on the choice of goal difficulty.
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